ASIC seeks public feedback on crypto-asset regulations

The Australian Securities and Investments Commission (ASIC) is inviting public input on the regulation of crypto-assets, aiming to update its guidelines to reflect the evolving digital asset market.

In a recent consultation paper, ASIC proposed revisions to Information Sheet (INFO) 225, which provides guidance for entities offering crypto-asset products and services.

The regulator has included 13 examples illustrating how existing financial product definitions apply to digital assets.

ASIC Commissioner Alan Kirkland emphasised the importance of creating a well-regulated financial system that benefits all stakeholders.

“We want to promote the growth of responsible financial innovation while ensuring consumer protection,” Kirkland stated.

He added that a well-regulated financial system enhances consumer confidence, market integrity, and fosters competition and innovation.

The release of the consultation paper was prompted by industry requests for clearer regulatory guidance.

The consultation period will remain open until February 28, 2025, with an updated version of INFO 225 expected to be published in the second quarter of next year.

Some key issues for public feedback include the application of existing Australian Financial Services (AFS) license processes, ASIC guidance, and standard conditions for digital asset businesses.

Additionally, ASIC is seeking input on practical licensing challenges related to wrapped tokens and stablecoins.

The consultation will also address potential issues linked to the Australian government's proposed digital asset platform and payment stablecoin frameworks, as well as consider regulatory relief options.