Government Publishes Update on Cryptocurrency and ICO Rules
Australian Government Publishes Update on Cryptocurrency and ICO Rules
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.