Australia’s corporate watchdog said on Friday that holders of underlying crypto-asset investment products would need a licence, as part of a new set of guidances it hopes would improve transparency and protect investors.
Many of Australia’s top financial institutions have not engaged with the high-risk cryptocurrency sector despite its huge growth in the past year.
A senate report called on Australia to introduce new laws such as tax discounts and a licensing regime for digital asset miners to be more competitive with other countries in the fast-growing space.
Australia’s Securities and Investments Commision (ASIC) has introduced a new “crypto-asset” section in its licensing applications that holders of underlying assets that comprise crypto-asset will need.
“Crypto-assets have unique characteristics and risks that must be considered by product issuers and market operators in meeting their existing regulatory obligations,” ASIC Commissioner Cathie Armour said.
Estimates of the size of the digital asset industry in Australia vary. One researcher finder.com.au says a sixth of Australians owned cryptocurrency in 2021 worth AUD 8 billion (45,200 crore), with bitcoin the most popular.
The ASIC also provided guidance on best practices for monitoring, holding and prices crypto-assets as well as disclosure and risk management.
© Thomson Reuters 2021
Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.
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