by Viktor A 

June 30, 2021

The Australian Securities and Investments Commission (ASIC) has published the first edition of its regulatory whitepaper on virtual currencies and exchange traded products (ETPs). The paper is the result of a consultation process conducted for the purpose of updating its guidance and regulation of virtual currencies and ETPs.

A new set of draft rules from the Australian Prudential Regulation Authority (APRA) are seeking public input on potential crypto-related exchange traded products (ETPs). The draft rules were released on May 25 and include a range of proposals, including a proposed limit of $75 million per ETP and a requirement for issuers to disclose their strategies and risk management procedures. The rules also require that an independent audit of the product’s strategy be conducted and the results made available to investors.

Cryptocurrency Exchange Traded Products (ETPs) are a relatively new asset and have the potential to revolutionise trading. They are also confusing.. Read more about australia crypto regulation and let us know what you think.word image 31580

The Australian Securities and Investments Commission (ASIC) is seeking public input on cryptoasset exchange-traded products (ETPs) and says it is aware of the growing interest and demand for their introduction on Australian regulated markets.

In a consultation document published on 30… In June, the regulator said its top priority was to assess whether the unique and evolving characteristics of crypto asset ETPs could consistently meet existing regulatory obligations. Given this complexity and the rapid pace of change in the sector, ASIC believes there is a need for a wide-ranging consultation to assess the two key issues on the agenda:

(a) whether these products can meet existing expectations for ETPs, including whether cryptoassets are suitable underlying assets, whether cryptoassets can be reliably valued, and how cryptoassets should be classified with respect to underlying asset rules; and (b) how product issuers can ensure that these products comply with our regulatory framework, including with respect to custody, risk management, and disclosure.

ASIC’s document states that given its assessment of the maturity of the spot industry and the level of regulation of its futures market, the regulator does not believe that all crypto assets can currently serve as suitable underlyings for ETPs. However, the regulator is open to approving FTEs for crypto assets that can meet all its relevant assessment criteria. Here explains the controller :

Currently, in our opinion, the only crypto assets that can meet these factors are bitcoin (BTC) and Ether (ETH).

ASIC’s move appears to have been prompted both by the recent listing of Ethereum ETPs on the Toronto Stock Exchange – which ASIC specifically mentions in its paper – and by the Australian Securities Exchange’s (ASX) ongoing review of several cryptocurrency ETP applications.

In recent months, ASIC has increasingly reached out to domestic blockchain and cryptocurrency companies in an effort to build trust and cooperation with the crypto economy. However, the regulator has been criticized by some of these companies for the perceived lack of transparency in existing cryptocurrency regulation and compliance obligations.

In its statement, ASIC points out that the classification and regulation of crypto assets is a matter for the government, even in Australia. The Senate Select Committee on Australia is currently considering options for a comprehensive regulatory framework for cryptocurrencies and digital assets, and ASIC stresses that its paper does not seek to pre-empt any decision the committee may make.

Related: VanEck and BetaShares are calling for an Australian cryptocurrency ETF, while family offices are buying BTC.

Audience reactions are expected on the 27th. July at ASIC. Respondents can choose to answer openly, anonymously or under a pseudonym.

Speaking to Cointelegraph, BetaShares founder and CEO Alex Vinokur responded to ASIC’s question about the desirability of offering retail investors access to ETPs’ underlying crypto assets through a licensed Australian marketplace. Vinokur said that BetaShares, as a local provider of ETPs and other funds traded on the ASX, believes that this approach offers consumers better protection than direct access through the exchanges.

Vinokur also agreed with the suggestion that regulated investment products such as ETPs should be limited to a small subset of crypto assets that can demonstrate reliable liquidity, transparency and pricing.The Australian Securities and Investments Commission (ASIC) has a new set of draft rules that ask for public comment on digital tokens (i.e. ETPs). The proposed rules would apply to all digital tokens if they meet certain investment criteria. And, in a nod to the current global debate on tokens, the ASIC asked for comment on whether proposed digital tokens would be classified as financial products or digital securities. …. Read more about asics and let us know what you think.

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Viktor A

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