The Australia Securities and Investments Commission has issued its response to public consultation on cryptocurrency exchange-traded products alongside fresh industry guidance.
The regulator issued a list of regulatory requirements for funds looking to offer crypto ETPs, including exchange-traded funds and structured products, following the months of industry consultation initiated in late June.
ASIC has so far given the go ahead for ETPs based on major cryptocurrencies like Bitcoin and Ether and believes more crypto assets to become a foundation for ETPs in the future
For each crypto ETF product application, licensed exchanges have to evaluate whether the issuer is able to achieve its obligations in relation to the product, Which includes providing safe and secure custody as well as obtaining relevant licenses.
In a response to public consultation, the ASIC also said that it doesn’t require domestic crypto custody for entities issuing crypto ETFs, noting that such restrictions would unfairly limit competition.
