- The Australian Securities and Investment Commission has issued new crypto guidelines
- Issuers of crypto assets will have to acquire Australian financial services licenses
- They will also have to comply with know-your-client and anti-money laundering measures
An important sign of the acceptance of cryptocurrency across the globe is the fact that new regulations and guidelines are being created consistently by world governments with regards to how blockchain and cryptocurrency should be handled. These guidelines and regulations are important because they allow the industry to be regularized, prevent misuse of cryptocurrency itself and give proper guidance for those within and outside the industry. The latest on this development came from the Securities and Investment Commission (ASIC) in Australia who published new guidelines on their official website on May 30, which included guidelines on initial coin offerings and cryptocurrency.
KYC and AML central pillars in new regulations
The new guidelines went into detail about some conditions that must be fulfilled by cryptocurrency businesses in order to remain in compliance with the Australian Corporation and ASIC acts. First, it was stated that if crypto assets are to be considered financial products then the firms and individuals who issue them are required to hold an Australian financial services license in order to comply with the laid down regulations.
In the case of crypto miners, there are certain situations under which they will be considered part of the clearing and settlement process. This is the case when the tokens in question are considered financial products under Australian law.
ICOs in Australia held to higher standards
Information was given about how the determination on whether or not to consider crypto tokens as financial instruments in Australia and “entities and their advisers need to consider all the rights and features of the ICO (regardless of how it is named and marketed) in determining whether the crypto asset is a financial product or involves a financial product.”
Any exchanges that hold crypto assets that are considered financial instruments will also need to hold a license and undertake appropriate inquiries to satisfy themselves of their compliance with all relevant Australian laws.
Know-your-client and anti-money laundering measures also need to be taken with regards to crypto assets as well as the Australian consumer law and this covers instances where the assets are issued or managed from outside Australia.
These laws will go a long way to legitimizing the industry within Australia and also to give a certain level of guidance for those within the industry to make sure they are within their rights and obligations. The know-your-client and anti-money laundering measures will also ensure the protection of those who want to invest within the industry to prevent instances of fraud and so on.