Asic releases guidance on crypto-asset related investment products – Finextra

Asic releases guidance on crypto-asset related investment products – Finextra

ASIC has today released information for product issuers and market operators on how they can meet their regulatory obligations in relation to crypto-asset exchange traded products (ETPs) and other investment products.

The information covers good practices for market operators in how they admit and supervise these products, and good practices for product issuers in how they establish and operate these products. Key matters covered by ASIC’s good-practice guide include admission and monitoring standards, custody of crypto-assets, pricing methodologies, disclosure and risk management.

ASIC’s good practices are set out in Information Sheet 225 Crypto-assets (INFO 225) and Information Sheet 230 Exchange traded products: Admission guidelines (INFO 230).

Responsible entities that intend to hold underlying assets that comprise crypto-assets will need to hold an authorisation in relation to crypto-assets. ASIC has introduced a new ‘crypto-asset’ category in the licensing application for responsible entities. Details of this are set out in INFO 225, with updates to relevant forms and regulatory guides to be made in due course.

ASIC Commissioner Cathie Armour said, ‘Crypto-assets have unique characteristics and risks that must be considered by product issuers and market operators in meeting their existing regulatory obligations. The good practices we published provide practical examples of how these obligations may be met, in a way that maintains investor protections and Australia’s fair, orderly and transparent markets.’
Background

The good practices and licensing changes follow ASIC’s public consultation in
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