Australia’s ASIC Announces New Guidelines Surrounding ICOs And Crypto Asset Mining
Australian Securities Regulator Has Released Guidelines For Crypto, Mining And ICOs
Australia has finally seen some good crypto news. The Australian Securities and Investment Commission (ASIC) has decided to publish a set of guidelines which will explain to local investors and businesses how to invest in cryptocurrencies, Initial Coin Offerings (ICOs) and mining.
According to the regulator, the main reason for releasing this now is to be able to maintain the integrity of the local financial market and ensure that the investors are protected all the time.
On the report, the regulator detailed some of the requirements that companies need to fulfill in order to be compliant with the laws from the country, including the Australian Corporations and ASIC Acts. However, some people have noted that the reports lack regulations which are enforced by some other institutions present in the country.
One of the most notable information present in the document was that cryptocurrency assets were considered financial products by law and that anyone issuing them would be required to have a financial services license emitted by a national organization in order to hold any kind of ICO.
Miners, according to the guidelines, will also be considered to be involved in the clearing and settlement process. Therefore, the local Australian laws will be applied to them as well, something that some miners might not be too fond of, especially the small ones.
It was also noted in the report that all entities and advisors of these companies will have to consider the ICOs in order to determine whether they will be considered securities or not by the current law and that this will change how the ICO will be dealt with.
The exchanges which will deal with these kinds of assets will also need special licenses as well in order to offer these services related to the crypto technology, as they will need to be compliant with Australian laws. Know Your Customers (KYC) and Anti Money Laundering (AML) laws will also be applied to the crypto assets and all companies who deal with them.
The ASIC commissioner John Price affirmed that the Australian laws will be promoted to all ICOs and that even to Australians who buy these products outside of the country as well. These laws are meant to protect investors and they cannot be ignored.
Looking at these changes, they seem to be mostly aimed at an effort of really regulating the market for once and for all. While they are not completely clear on literally all the aspects that make up the market, they are fairly straightforward in regulating most of them, which is what companies should be doing today.
In related news, some regulators of the country have recently spoken about the OneCoin project, which was deemed to be a scam recently.