The Australian regulator ASIC has introduced new guidelines that require more stringent licensing for companies dealing with digital assets.
ASIC's New Crypto Guidelines
On December 4th, the Australian Securities and Investment Commission (ASIC) issued a consultation document classifying several digital assets as financial products. As a result, most companies dealing with crypto now need to acquire licenses.
Burden on Small Players
Platforms that facilitate trading in financial products may require an Australian Market License. Enterprises providing financial services or dealing in financial products must have an Australian Financial Services License (AFSL).
Market Impact and News
The challenges of these new rules may lead to an outflow of crypto enterprises from Australia. Experts believe that it gives significant regulation to the market, but larger companies will have the resources to meet new requirements. ASIC is considering products like stablecoins and tokens as potential new financial products and services.
While ASIC's new guidelines may challenge smaller enterprises, they offer much-needed regulatory clarity for the crypto sector.
