ASIC Issues Guidance on Crypto-Asset Related Investment Products

The Australian Securities and Investments Commission (ASIC) today published guidance for product issuers and market operators on how they can meet their regulatory obligations in relation to crypto-asset exchange traded products (ETPs) and other investment products.

The information covers good practices for market operators in how they admit and supervise these products, and good practices for product issuers in how they establish and operate these products.

Key matters covered by ASIC’s good-practice guide include admission and monitoring standards, custody of crypto-assets, pricing methodologies, disclosure and risk management.

The regulator highlighted that responsible entities that intend to hold underlying assets that comprise crypto-assets will need to hold an authorisation in relation to crypto-assets. ASIC has introduced a new ‘crypto-asset’ category in the licensing application for responsible entities.

“Crypto-assets have unique characteristics and risks that must be considered by product issuers and market operators in meeting their existing regulatory obligations,”ASIC Commissioner Cathie Armour said.”The good practices we published provide practical examples of how these obligations may be met, in a way that maintains investor protections and Australia’s fair, orderly and transparent markets.”

In its latest enforcement action, ASIC disqualified Phillip Anthony Royce​, of Jan Juc, Victoria from managing companies for two years and six months due to his involvement in the failure of three companies.