when

The Australian Securities and Investments Commission (ASIC) has released a consultation paper proposing updates to its regulatory guidance on digital assets, focusing on compliance with the Corporations Act. 
The revisions to Information Sheet 225 (INFO 225) include 13 worked examples to clarify when digital assets, such as stablecoins, wrapped tokens, and staking services, qualify as financial products. 
Among the examples provided, ASIC outlines scenarios involving exchange tokens, yield-bearing stablecoins, and tokenized assets like concert tickets. 
The draft guidance suggests that the classification of these assets depends on “the rights, benefits, expectations, and product features inherent to, and offered together with the token.” ASIC is also offering temporary relief from penalties to businesses working on obtaining licenses, as long as they meet certain requirements, including joining the Australian Financial Complaints Authority. 
ASIC is considering additional examples for wrapped tokens and stablecoins, acknowledging the regulatory complexity surrounding these assets. 
Caroline Bowler, CEO of BTC Markets, welcomed the updates, calling the approach “collaborative and necessary to foster innovation,” according to Decrypt. She expressed her satisfaction that the industry now has clearer guidance to work from, and appreciated ASIC’s consultative engagement with industry stakeholders. 
Bowler also pointed out the potential impact on access to critical tools like stablecoins, warning that it could push Australian users to platforms based overseas. “This is especially relevant given their integral role in decentralized finance,” she noted. 
However, she also praised the exclusion of non-financial products such as NFTs and meme coins, considering it a positive move for the industry. 
Australia’s efforts to regulate digital assets have faced delays due to shifting policy approaches and concerns from the industry. In October 2023, the government proposed that crypto exchanges and digital asset platforms be subject to existing financial services laws. 
ASIC has urged crypto companies to apply for an Australian Financial Services License, offering a grace period from legal action while their applications are being processed. 
Still, some domestic industry leaders, including Swyftx CEO Jason Titman, have raised concerns about the “far-reaching implications” of ASIC’s proposed regulations. These include requirements to issue audited prospectuses and treat exchanges as financial markets. 
Feedback on the consultation paper, addressing concerns such as compliance costs and the impact on competition, is due by February 28 next year. Updated guidance is expected by mid-2025. 
The post <a href="https://www.unlock-bc.com/133765/australias-asic-proposes-new-digital-asset-regulations-for-clarity-and-innovation/">Australia’s ASIC Proposes New Digital Asset Regulations for Clarity and Innovation</a> appeared first on <a href="https://www.unlock-bc.com">UNLOCK Blockchain</a>.

Australia’s ASIC Proposes New Digital Asset Regulations for Clarity and Innovation

UNLOCK_ENG

Other articles published on Dec 5, 2024

Attention Traders: Do Not Miss the 30% Rise of This Dwindling Altcoin in December 2024

Discover the Future of Trading with FATTY and Its FatBot, a Tool Poised for the Top 5 in the Market

Current Price Predictions for Solana, Avalanche, Dogecoin, and Chiliz

TSMC Arizona Eyes Nvidia for Blackwell AI Chip Manufacturing

Crypto Yield Farming: What Is It & How Does It Work?

Cardano Price: Analyst Predicts Possible All-Time High

Join our free newsletter for daily crypto updates!