Australia’s corporate watchdog said Friday that holders of underlying crypto investment products would need a license as part of a new set of guidelines that it hopes will improve transparency and protect investors.
Many of Australia’s leading financial institutions have not looked into the high-risk cryptocurrency sector despite the tremendous growth over the past year.
A Senate report called on Australia to introduce new laws like tax rebates and a licensing regime for digital asset miners to be more competitive with other countries in the fast-growing space.
The Australian Securities and Investments Commission (ASIC) has introduced a new “Crypto-Asset” section in their license applications that is required by holders of underlying assets that include crypto-assets.
“Crypto assets have unique properties and risks that product issuers and market operators must consider in meeting their existing regulatory obligations,” said ASIC Commissioner Cathie Armor.
Estimates of the size of the digital asset industry in Australia vary. A researcher finder.com.au says a sixth of Australians owned a $ 8 billion (45,200 crore) cryptocurrency in 2021, with Bitcoin being the most popular.
The ASIC also provided guidance on best practices for monitoring, holding, and pricing crypto assets, as well as disclosure and risk management.
© Thomson Reuters 2021
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