Australian regulator seeks public opinion on crypto ETP

The Australian Securities and Investments Commission (ASIC) is seeking public feedback on crypto-asset exchange-traded products (ETP), statement It is aware of the increasing interest and demand for launching them in the regulated Australian market.

in a Consultation Document The regulator announced on June 30 that its primary task is to evaluate whether the “unique and evolving features” of the ETP of encrypted assets can meet existing regulatory obligations in a consistent manner. Given the complexity and rapid pace of change in the industry, ASIC noted that it believes extensive consultation is necessary to assess two key issues:

“(A) Whether these products can meet the current expectations of ETP, including whether encrypted assets are suitable underlying assets, whether encrypted assets can be reliably priced, and how to classify encrypted assets according to the underlying asset rules; (b) How can product issuers ensure that these products comply with our regulatory framework, including custody, risk management and disclosure.”

ASIC’s documents indicate that, considering its assessment of the maturity of the industry’s spot market and the level of supervision of the futures market, the regulator does not believe that all encrypted assets can currently be used as suitable underlying assets for ETP. However, regulators are open to approving crypto-asset ETPs that can meet all of their relevant evaluation standards. Here, the regulator pointed out:

“At present, in our opinion, the only crypto asset that may satisfy these factors is Bitcoin (Bitcoin) And ether (Ethereum)”

ASIC’s initiative seems to be motivated by both parties Ethereum ETP recently listed on the Toronto Stock Exchange — What ASIC clearly pointed out in its paper — and is in progress Australian Securities Exchange (ASX) consideration of several crypto ETP applications.

In recent months, ASICs have become more and more Actively contact domestic blockchain and encryption companies And has been trying to establish trust and cooperation with the encryption economy. However, regulators have been criticized by some of these companies for the opaqueness of existing regulations and compliance obligations of crypto companies.

ASIC emphasized in its statement that the classification and supervision of crypto assets themselves in Australia is a government issue.The Australian Senate Special Committee has been evaluating Develop a comprehensive regulatory framework for encryption And digital assets, ASIC emphasized that its documents “do not seek to pre-determine any decisions that the committee may make.”

related: As the family office snapped up BTC, VanEck and BetaShares applied for an Australian cryptocurrency ETF

Public feedback needs to be submitted to ASIC before July 27. Respondents can choose to submit responses publicly, anonymously, or using aliases.

In an interview with Cointelegraph, Alex Vynokur, founder and CEO of BetaShares, answered ASIC’s advisory question on whether it is appropriate to provide retail investors with exposure to ETP-related crypto assets through the Australian licensed market. Vynokur said that as a local provider of ETP and other ASX trading funds, BetaShares believes that this approach will provide consumers with better protection than direct access through an exchange.

Vynokur also agreed with the proposal that regulated investment products such as ETP should be limited to “a small part of encrypted assets that can demonstrate strong liquidity, transparency and price discovery”.