<ul class="wp-block-list">
 <li>A final version of INFO 225 will be published in mid-2025 after taking account of the final received.</li>
 <li>ASIC is looking for feedback on major issues such as the application of current financial services licensing processes to virtual asset businesses, and the regulatory challenges involving wrapped tokens as well as stablecoins.</li>
 <li>These guidelines will also be applied to some of the major crypto exchanges within the boundaries.&nbsp;</li>
</ul>
A consultation paper has been released by the <a href="https://news.todayq.com/australias-asic-to-regulate-crypto-companies-with-financial-licenses/" target="_blank" rel="noopener noreferrer nofollow">Australian Securities and Investments Commission</a> (ASIC) at the time of giving major updates to the virtual assets guidance and related financial products.&nbsp;
After giving this update, the regulator is trying to give more clarity over the current definition of the financial product that applies to crypto and can be involved in digital asset regulation to a certain degree.&nbsp;
This step has been criticized by many prominent analysts from the crypto industry as they believe that it would only give profit to big businesses and push small players out of the market.&nbsp; What does the Commissioner state?&nbsp; 
The Consultation Paper 381 (CP 381) was released by the main financial regulator of Australia ASIC on December 4. The consultation paper has thrown light on the updates to Information Sheet 225 (INFO 225) concerning IETH and related financial products. These products will give clarity on how some of the traditional market rules are also applicable to virtual assets.&nbsp;
The Commissioner of ASIC, Alan Kirkland highlighted the significance of balancing a responsible financial revolution revolving around consumer protection. He further went on to state:&nbsp;
“We want to boost the growth of accountable financial innovation at the same time we will ensure consumer protection. An orderly financial system profits everyone in the community as it backs consumer confidence, and market integrity and promotes competition and innovation.&nbsp;
Kirkland also mentioned that the regulatory regime of Australia is wide and technology-neutral which permits virtual assets to provide shelter within the current substructure for financial products.&nbsp; Final draft to come in 2025&nbsp; 
Adding more to this, ASIC is looking for feedback on major issues such as the application of current financial services licensing processes to virtual asset businesses, the regulatory challenges involving wrapped tokens as well as stablecoins, and the capability for regulatory relief for business conversion to new regimes.&nbsp;
Moreover, ASIC further noted that it will consult on these updates till February 28, 2025. A final version of INFO 225 will be published in mid-2025 after taking account of the final received. Also, it will carry on to use the regulatory tools to safeguard consumers and keep the market integrity in the crypto market.&nbsp; 
These guidelines will also be applied to some of the major crypto exchanges within the boundaries. Some prominent crypto analysts from the industry said that compliance will no longer be optional under the new regulatory rules and market players will possibly have a close consideration.&nbsp;
There are some concerns that revolve around the draft guidance of ASIC that could leave crypto startups at risk, possibly taking a withdrawal of firms from the country. A crypto lawyer, Joni Pirovich stated on Linkedin that the updated guidance could make an introduction to the crypto business in Australia “as expensive as, or even more costly than, introducing offshore”.&nbsp;
She further stated that, From a timing perspective, the innovators of Australia who want to introduce now will possibly do so offshore. Those that are established here face a prominent increase in compliance costs.

ASIC introduced a consultation paper to provide updates on virtual assets guidance

Todayq News

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