The Australian Securities and Investments Commission (ASIC) is gearing up to introduce a range of regulatory reforms for the crypto sector, focusing on desired regulatory outcomes.
ASIC Commissioner Alan Kirkland emphasized the need to address the “regulatory trilemma” in financial innovations, balancing consumer protection, market integrity, and encouraging financial innovation. The goal is to foster trust in crypto and decentralized financial systems while ensuring oversight.
Kirkland outlined the ASIC’s desired outcome: a clear set of rules that maintain market integrity, mitigate risks for consumers and investors, and promote compliance and enforcement mechanisms.
The ASIC has received numerous proposals for tokenizing financial products and real-world assets. Some types of tokenization will fall under the current regulatory regime, while others will be regulated through the government’s digital asset platform proposal.
ASIC believes that its approach to innovation and effective regulation can help reduce risks associated with digital assets and promote their adoption among the masses.
In October 2023, the Department of the Treasury proposed new rules mandating crypto exchanges to obtain a financial services license from ASIC if they hold over AU$5 million or AU$1,500 per individual. The proposal aims to seek feedback and address regulatory concerns in the crypto space.
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