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The Australian Securities Regulatory Authority has introduced guidelines for cryptocurrency ETPs.


According to the report, the Australian Securities and Investments Commission (ASIC) has published a response to a public advisory focused on cryptocurrency exchange-traded products (ETPs) and provided new industry guidance.

Specifically, after months of industry consultation, it is reported that regulators have introduced into their regulations a set of requirements focused on funds designed to offer cryptocurrency ETPs, including exchange-traded funds (ETFs) and structured funds. in June.

According to detailed instructions in the official guidelines, ASIC has so far relied on the large cryptocurrencies fiat Bitcoin (BTC) and Ethereum (ETH) to approve ETP, and expects additional crypto assets to serve as the basis for ETP in the long run. see.

“As of October 2021, Bitcoin and Ethereum are expected to meet all five factors mentioned above to determine the right underlying asset for ETP. We anticipate that over time, the range of non-financial crypto assets that can meet these factors will expand.”

The guidelines also recommend that virtual assets have “a high level of institutional support, a mature spot market, a regulated futures market, and a reputable and experienced service provider” to be a suitable basis for a cryptocurrency ETF. and a transparent pricing mechanism”.

It has been reported that for each cryptocurrency ETF product application, regulated exchanges should assess the ability of the issuer to complete responsibilities related to issuance, including providing secure and reliable custody and obtaining relevant licenses.

“While we acknowledge the concerns raised by respondents about overseas storage of cryptocurrency assets, including the possibility of recovering domestic assets, we believe that the mandatory requirements for domestic custodians are inadequate.”

In response to the public consultation, ASIC argued that institutions offering cryptocurrency ETFs did not mandate custody of domestic cryptocurrencies, acknowledging that such restrictions would limit competition in an unfair manner.

Information Source: 0x information edited by THECRYPTOSIGHT, copyright belongs to the author Natalie Wu and may not be reproduced without permission.


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