Australian Securities Regulatory Authority Issues Guidelines for Encrypted ETP

The Australian Securities and Investments Commission (ASIC) has issued a response to the public consultation on cryptocurrency exchange-traded products (ETP) and new industry guidelines.

On October 29, the regulator Released A series of regulatory requirements for funds seeking to provide encrypted ETP, including exchange-traded funds (ETF) and structured products, are as follows Several months of industry consultation Started in late June.

According to official guidelines, ASIC has so far approved ETP based on major cryptocurrencies (such as Bitcoin).Bitcoin) And ether (Ethereum) And look forward to more encrypted assets becoming the basis of ETP in the future:

“As of October 2021, Bitcoin and Ethereum seem likely to meet all five factors mentioned above to determine the appropriate underlying assets for ETP. We expect the range of non-financial product crypto assets that can meet these factors will evolve over time expand.”

The guide stated that to become an appropriate foundation for an encrypted ETF, encrypted assets should receive high-level institutional support, a mature spot market, a regulated futures market, a reputable and experienced service provider, and a transparent pricing mechanism.

For each encrypted ETF product application, the licensed exchange must assess whether the issuer can fulfill its product-related obligations, including providing safe and reliable custody and obtaining relevant licenses.

in a reply In consultation with the public, ASIC also stated that it does not require entities issuing encrypted ETFs to conduct crypto custody in the country, and pointed out that such restrictions would unfairly restrict competition.

The document reads: “Although we acknowledge that respondents have raised concerns about overseas custody of encrypted assets, such as the difficulty in recovering assets across jurisdictions, we believe that mandatory requirements for domestic custodians are inappropriate.”

related: More than 40 digital currency ETFs are waiting for U.S. regulatory approval

The news was released shortly after the release of Australian hedge fund manager Cosmos Asset Management Debut It is an ETF related to cryptocurrency mining that was listed on Chi-X Australia on October 28. Cosmos Global Digital Miners Access ETF began trading under the stock code DIGA and tracked several companies such as Riot Blockchain, Marathon Digital, Hive Blockchain Technologies, Hut 8 Mining, etc.

Australian ETF provider BetaShares is also Ready to launch an encrypted ETF Associated with industry companies such as Coinbase and MicroStrategy.According to reports, crypto ETFs will Start It will be traded on the Australian Securities Exchange next week under the ticker symbol CRYP.