The Australian Securities and Investments Commission (ASIC) has ended updated regulatory guidance for businesses involved with ICOs and crypto assets.
Announced Thursday, the guidance charges the legal obligations for cryptocurrency firms under the country’s Corporations Act, the ASIC Act and other laws.
“These regulatory demands are in place to maintain the integrity of Australia’s financial market and ensure consumer protection,” the regulator said.
ICOs and crypto assets in multifarious cases are financial products or involve financial products that are regulated under the Corporations Act, according to ASIC. Accordingly, if a firm is issuing a token that falls within the definition of a financial product (such as an interest in a managed investment racket or a security), laws will apply, including the requirement to hold an Australian financial services (AFS) license.
Laws also provide for those giving advice, dealing, or providing other intermediary services for crypto-based financial products.
Cryptocurrency purse and custody service providers, on the other hand, need to ensure they hold the appropriate custodial and depository authorizations. Cryptocurrency miners, if succouring the clearing and settlement of tokens that are financial products, are also bound by Australian laws.
Cryptocurrency exchanges and traffic platforms also need to comply with applicable rules, including holding an Australian market license, while cryptocurrency payment and magnate service providers are required to apply for an AFS license if they are providing “non-cash payment facility,” as well as complying with a several of laws.
John Price, ASIC commissioner, said:
“Australian laws will also apply even if the ICO or crypto-asset is present or sold to Australians from offshore. Issuers of ICOs, crypto-assets and their advisers should not assume the use of these characters means that key consumer protections under Australian laws do not apply or can be ignored.”
For ICOs and crypto assets that are not fiscal products, promoters must ensure that they do not engage in misleading or deceptive conduct or statements, ASIC translated.
ASIC first issued regulatory guidance for ICOs in 2017. At the time, rules were mainly focused on Australian consumer law and the countryside’s Corporations Act.
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