Australia’s financial watchdog on Tuesday requested feedback on updates to its digital asset guidance. The changes aim to clarify how the Corporations Act 2001 applies to digital assets and guide entities offering related financial services.
The Australian Securities and Investments Commission (ASIC) included 13 practical examples in a document to show how current financial product definitions apply to digital assets and related products.
Updated guidance will detail how businesses can obtain an Australian Financial Services (AFS) licence to handle digital assets classified as financial products. It also outlines the criteria ASIC uses to assess licence applications, emphasizing compliance with financial services laws.
Proposed updates also define the ongoing responsibilities for AFS licence holders dealing with digital assets. These include managing risks, providing necessary disclosures and ensuring financial services are delivered honestly and fairly.
ASIC’s Draft Guidance Aims to Refocus ICOs, Define Stablecoin Legal Status
Further, the proposed changes intend to shift focus away from initial coin offerings (ICOs), treating them as just one method of distributing digital assets.
The regulator is also seeking input on classifying stablecoins and wrapped tokens under the regulatory framework. The goal is to clarify their legal status and keep the guidance relevant as the digital asset sector evolves.
ASIC’s draft guidance will serve as a “living document,” updated regularly to match advancements in digital assets.
Australia Regulator’s Final Updated Digital Asset Regulations Expected by Mid-2025
The regulator asked for feedback on key issues, including expected compliance costs, the potential impact on competition, and other related effects. It also sought views on introducing a class-wide “no action” position for digital asset businesses applying for or updating an AFS, Australian Markets, or Clearing and Settlement Facility licence.
“Australia’s financial services regulatory regime is broad and technology neutral,” ASIC Commissioner Alan Kirkland said. “Many digital assets and related products are financial products under the current law. Stakeholders have been calling for greater clarity and in response, we are releasing our draft updated guidance.”
“We encourage all stakeholders to engage with the consultation process. We recognise that industry will need some time to consider and act on our updated guidance, so we are also consulting on a proposed transitional approach.”
In September, Kirkland told Cryptonews that ASIC planned to release new draft guidance soon and invite industry feedback on the updates.
“Millions of Australians now hold crypto-asset investments and ASIC wants to make sure they have access to important consumer protections provided by the current regulatory regime” he said.
Feedback on the proposed document is due by 5pm on Feb. 28, 2025. ASIC plans to release the final revised guidelines by mid-2025.
The post Australia’s Financial Watchdog Calls for Opinions on Digital Asset Regulation Updates appeared first on Cryptonews.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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