Catenaa, Sunday, December 08, 2024- The Australian Securities and Investments Commission (ASIC) is inviting feedback on proposed updates to its guidance for digital asset regulation, aiming to clarify how existing financial laws apply to the fast-evolving sector.
The updated guidance details how entities offering digital asset-related financial services can secure an Australian Financial Services (AFS) licence, highlighting compliance standards, risk management, and disclosure requirements. It also includes 13 examples illustrating how financial product definitions align with digital assets.
A key focus of the draft is redefining the regulatory treatment of stablecoins, wrapped tokens, and initial coin offerings (ICOs). By shifting focus away from ICOs and establishing clearer classifications for stablecoins, ASIC intends to keep its regulations relevant in the dynamic crypto landscape.
ASIC Commissioner Alan Kirkland urged stakeholders to participate, emphasizing the need for a balanced approach that ensures investor protections while supporting industry growth. “Millions of Australians now hold crypto-asset investments, and ASIC wants to ensure they benefit from important consumer protections,” Kirkland said.
Stakeholders can provide feedback until Feb. 28, 2025. The final regulations are expected by mid-2025, including transitional measures to help the industry adapt to the changes.
