The Australian Securities and Investments Commission will ramp up its scrutiny of the crypto industry with new guidance on cryptocurrencies, expanding on its enhanced enforcement program.
The action may broaden the requirement for crypto exchanges to obtain licences such as the ASIC-issued Australian Financial Services Licence or an Australian Prudential Regulation Authority licence for purchased payment facilities. It would front-run the delayed digital asset platform regulation Treasury is shepherding.
ASIC’s guidance will be in the form of an expanded information sheet known as INFO 225 which lays out obligations for businesses involved with crypto-assets such as cryptocurrency, tokens or stablecoins or are considering raising funds through an initial coin offering.
An ASIC spokesman said the commission was unable to provide detail at this time but industry participants are expecting more detail later this week.
Clyde & Co partner Liam Hennessy, an expert in decentralised finance law, said he expected the updated note would build on ASIC’s recent enforcement actions. These include Blockearner; non cash payments where businesses give stablecoins and other crypto products the ability to make payments, making them arguably a non cash payment facility; and the use of tokens with simple agreements for future equity or SAFE notes.