Government Publishes Update on Cryptocurrency and ICO Rules

Australian Government Publishes Update on Cryptocurrency and ICO Rules

In part, the release notes,"Businesses offering crypto-assets, or offering services in relation to crypto assets, have to undertake suitable queries to satisfy themselves they are complying with all relevant Australian legislation."
ASIC Commissioner John Price stated,"Australian legislation will also apply if the ICO or crypto-asset is encouraged or sold to Australians from overseas. Issuers of ICOs, crypto-assets and their consultants shouldn't assume using those structures means that essential customer protections under Australian legislation don't apply or can be ignored." In cases where miners may be regarded as a part of the settlement and clearing processes for products , Australian legislation will use. Unless covered by an exemption, exchanges that handle and offer trading of those assets would be required to adhere to the guidelines, such as holding an Australian marketplace license. Within this guideline, requirements that will need to be followed to become compliant with all the ASIC Act are outlined by the financial regulator.

The Australian Securities and Investments Commission (ASIC) has published an update on how it plans to govern crypto-related companies and first coin offerings (ICOs). Crypto wallet and custody providers would need the proper custodial and depository authorizations to run, while advantage payment and service providers involved with payment facility demand an AFS license. As stated by the Corporations Act, an ICO may be a financial product whether it is a"managed investment strategy, safety, derivative or non-cash payment (NCP) facility," ASIC describes. The agency pointed out that it could be enforcing know-your-customer along with anti-money laundering standards on all crypto assets. These cover assets handled within and out of the boundaries of the country with the Australian Consumer Law in tandem. Moving forward, companies devoting crypto assets regarded as financial goods will be needed by law to secure an Australian Financial Services (AFS) license. On the flipside, for crypto assets that are products, promoters have to ensure that they don't engage in any form of advertising that is deceptive. This update is noteworthy as the country continues to battle crypto scams, losing almost $4.3 million in 2018.