In Brief:
- ASIC issued guidelines for funds looking to offer crypto exchange-traded products (ETPs).
- In its licensing applications, ASIC added a new crypto-asset component.
- Firms issuing crypto ETFs are not required to have domestic crypto custody.
The Australian Securities and Investments Commission (ASIC) has responded to the public review of crypto exchange-traded products (ETPs) and offered new market support.
The Australian financial markets regulator has announced guidelines for the launch of cryptocurrency exchange-traded products (ETPs) and other investment products.
This could lead to the listing of cryptocurrency instruments on Australian stock exchanges in the upcoming weeks.
Holders of underlying assets that make up crypto-assets will need to fill out a new crypto-asset part in their license applications according to the new guidelines.
Licensed exchanges must review whether the issuer is capable of fulfilling its duties regarding the product, including providing safe and secure custody and acquiring appropriate licenses for each crypto ETF product application.
ASIC has so far approved ETPs based on major cryptocurrencies such as Bitcoin and Ethereum and anticipates more crypto assets to be used as a foundation for ETPs in the future.
The guidelines stated, “As at October 2021, Bitcoin and Ether appear likely to satisfy all five factors identified above to determine appropriate underlying assets for an ETP. We expect the range of non-financial product crypto-assets that can satisfy these factors will expand over time.”
ASIC also indicated that domestic crypto custody is not required for entities offering crypto ETFs, citing the fact that such requirements would unfairly limit competitors.
In August, Australian Securities and Investments Commission (ASIC) had started issuing warnings to citizens against unlicensed crypto businesses.
