The Australian Securities and Investments Commission (ASIC) is seeking public input on various issues, including the application of existing regulations to digital assets.
Australian Regulator Seeks Public Input on Crypto-Asset Regulations
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A Well-Regulated Financial System for All
The ASIC has released a consultation paper proposing updates to Information Sheet (INFO) 225 on crypto-assets. The regulator said the evolving digital asset market necessitates updating INFO 225, which guides those offering crypto-asset products and services.
ASIC has included 13 examples demonstrating how current financial product definitions apply to digital assets and related products. ASIC Commissioner Alan Kirkland said the goal is to create a well-regulated financial system that benefits everyone.
“We want to promote the growth of responsible financial innovation while ensuring consumer protection. A well-regulated financial system benefits everyone in the community as it supports consumer confidence, and market integrity and facilitates competition and innovation,” Kirkland said.
The ASIC Commissioner said industry pleas for greater clarity prompted the regulator to release the consultation paper. The consultation process is expected to run until 5 p.m. on Feb. 28, 2025, with the updated INFO 225 set for release in the second quarter of next year.
Some of the issues the regulator seeks public input on include the application of existing Australian Financial Services (AFS) license processes, ASIC guidance, and standard conditions for digital asset businesses. The regulator also wants feedback on “practical licensing issues” for wrapped tokens and stablecoins.
The consultation process will also examine potential issues arising from the Australian government’s proposed digital asset platform and payment stablecoin regimes, as well as consider potential regulatory relief. The Australian regulator wants stakeholders to consider a “no-action” stance for digital asset businesses in the process of obtaining or modifying an AFS license, Australian Markets License, or Clearing and Settlement Facility license.
Meanwhile, the regulator said it will continue to use “its full range of regulatory and enforcement tools to protect consumers and uphold market integrity in the digital asset sector.”
