Additionally, the document also addresses scenarios in which a person may provide a financial service requiring a license from ASIC.
“We consider that the time is right to update INFO 225. This is facilitated by the fact that the existing regulatory regime is principles-based and provides sufficient flexibility to regulate digital assets that are financial products.”
ASIC’s examples range from exchange tokens to digital asset wallets, further demonstrating how current definitions and concepts apply to hypothetical digital asset scenarios under the existing regulatory regime.
The consultation document specifically seeks feedback on the application of existing Australian Financial Services License (AFSL) processes, ASIC guidelines and standard conditions to digital asset businesses.
The corporate regulator is also seeking feedback on practical licensing issues for wrapped tokens and “stablecoins”, and in particular on issues arising from the potential transition to the government’s proposed digital assets platform and stablecoin payment regimes, and on the examination of possible regulatory relief.
Additionally, it seeks stakeholder feedback on a possible collective “no action” position for digital asset companies that are in the process of applying for different licenses.
ASIC Commissioner Alan Kirkland highlighted the importance of regulatory clarity, noting that a well-regulated financial system benefits all members of the community and supports “consumer confidence, the integrity of market and facilitates competition and innovation.
“Stakeholders have called for more clarity and in response we are publishing our draft updated guidelines. »
INFO 225 was then updated in 2018, 2019 and 2021.
It was updated in 2021 to add best practice guidance for investment products providing exposure to crypto assets.
ASIC noted that digital asset markets have evolved significantly over the past 10 to 15 years, from a few hundred digital asset tokens to tens of thousands today.
According to the data, more than 360 digital currency exchanges are currently registered with the Australian Transaction Reporting and Analysis Centre.
