Australian securities watchdog issues guidelines on crypto investment

The Australian Securities and Investments Commission (ASIC) has issued rules for crypto investment products. The rules, which were issued in a statement today, clarify guidelines for businesses and individuals regarding their obligations when offering financial products that contain cryptocurrencies.

This is particularly significant for cryptocurrencies, exchange-traded products (ETFs), and other investment services. The ASIC is in charge of maintaining fair, orderly, and transparent financial markets in Australia.

Key guidelines on crypto investments

This release offers guidance for industry participants on how to handle and regulate these assets and services in a secure manner. It also described several effective strategies for product creators on how to create and market these things.

A good-practice guide is one of the most essential topics addressed in the ASIC report. The primary concern is on admissions and monitoring standards, crypto-asset custody, pricing methodologies, and disclosure and risk management.

In order to acquire cryptocurrency assets, you’ll need a suitable license, according to the report

An ASIC commissioner Cathie Armour said that Crypto-assets have their own distinctive features and dangers. In order to meet current regulatory standards, product producers and market operators must consider these issues.

She continued by adding that the excellent examples given will serve as valuable models on how to meet these obligations. The major aim is to safeguard investors and maintain Australia’s fair, organized, and transparent marketplaces.

In July, ASIC issued a warning about the risks of Bitcoin. This was in response to a media report by Australia’s stock exchange that it would launch the country’s first crypto-ETF by the end of the year. The commission advised everyone to exercise caution while exploring cryptocurrency.

Australia’s push for crypto regulation

This release follows the Australian senate committee continuing push for crypto regulation in the country. As reported by The Coinrise, Australia as a Technology and Financial Centre committee issued its third report calling for changes to Bitcoin regulation and licensing. To encourage crypto adoption, the committee proposed the easing of taxes on cryptocurrency.

In fact, the committee has spent the previous three months meeting with representatives from the crypto sector to come up with suggestions that will help Australia become a competitive global player in this fast-growing area.

In conclusion, ASIC recognizes the report  submitted by the committee on 20th October. The commission made submissions to the Select Committee and will collaborate with the Treasury and Government as they consider the proposals in the final report.