Indications have been made The Australia Securities and Investments Commission that Bitcoin and Ether are the only two crypto assets with prospects to meet its evolving criteria for a regulated crypto ETP.
The Australia Securities and Investments Commission (ASIC) is in search of public feedback on crypto-asset exchange-traded products (ETPs), stating its awareness of growing interest and demand in their launch on regulated Australian markets.
In a consultation paper released June 30, the regulator stated its main priority was to assess whether the “unique and ever evolving features” of crypto-asset ETPs could meet current regulatory responsibilities in a consistent manner. Given the complex nature and the fast pace of changing industry, ASIC notes it deems it essential to consult in a broader scale in order to evaluate the two key matters at stake:
“(1) If these products can meet current expectations for ETPs, which include if crypto-assets are a suitable underlying assets, whether crypto-assets can be reliably priced, and how crypto-assets are classified with respect to underlying asset rules.“(2) How product issuers can guarantee these products are compliant with the regulatory framework, with respect to the following aspects of custody, risk management and disclosure.”
ASIC’s paper shows that the regulator does not consider that all crypto assets are presently able to serve as suitable underlying assets for an ETP, while taking into consideration its valuation of the maturity of the industry’s spot and the state of regulation of its futures market. However, the regulator is open to approving a crypto asset ETP that would be able to meet all its relevant assessment criteria. Here, the regulator notes:
“At this point in time, in our view, the only crypto-assets that are likely to satisfy these factors are bitcoin (BTC) and ether (ETH).”
Recently ASIC has become increasingly active in reaching out to domestic block chain and crypto firms. It has been attempting to create trust and collaborate with the crypto economy. Some of these firms have criticized the regulator firms for the perceived opacity of existing regulations and crypto companies’ compliance obligations.
ASIC stresses that the way in which crypto assets themselves are classified and regulated in Australia is a question for the government. Australia’s Senate Select Committee has been evaluating options for the growth of a comprehensive regulatory framework for crypto and digital assets.
