Australia follows Canada’s lead in regulating crytpo trading products
Australian crypto regulators are joining their counterparts in Canada in embracing the idea of regulating retail investment funds holding crypto assets.
Canadian regulators were the first to embrace the idea. The Australian Security and Investment Commission (ASIC) subsequently released a consultation paper on exchange traded products (ETPs) and other retail platforms that expose crypto assets.
The launch of bitcoin-based ETFs on the Toronto Stock Exchange has garnered a lot of attention globally. ASIC noted that similar products exist in Australia and could pose a real risk to consumers if not properly developed and operated.
Among the issues highlighted in the paper is whether crypto-based investments can meet the requirements like other convection funds. They are also looking to determine whether cryptoassets can be reliably valued. Or whether the rules of existing funds can be applied.
The document also took into consideration issues related to custody, risk management and disclosure. ASIC further noted that the same issues were also being considered by regulators in the United States and Canada. In a statement, ASIC Commissioner Cathie Armor insisted that market regulators and product issuers should be mindful of meeting regulatory requirements when creating and trading their products. ASIC is expected to publish final recommendations by the third quarter of the year.