The Australian Securities and Investments Commission (ASIC) intends to adopt a new approach when regulating cryptocurrency exchanges. It also intends to tighten its scrutiny of initial coin offerings (ICOs). The ASIC released its corporate plan for 2018-2022 on September 7. In this corporate plan, the ASIC outlined the areas that it intends to focus upon during the said time period.
Amongst its other plans, one of the top priorities of ASIC is to continue monitoring threats of harm from emerging products such as ICOs and cryptocurrencies. The ASIC said that for 2018 and 2019, it is developing a new framework that will intervene where they observe potential harm and poor behavior towards investors and customers. This new framework will also be applying the principles for regulating market infrastructure providers to crypto exchanges.
The present market infrastructure principals as mentioned on the ASIC website include a licensing scheme. Via this licensing scheme, it seeks to supervise settlement facilities, financial market operators, market participants, and derivative trading.
The ASIC has been following supervisory approaches, such as dispatching its staff onsite to financial institutions that pertain to emerging tech including cryptocurrency exchanges. ASIC’s planned framework follows cross-department efforts.
Presently, Australian crypto exchanges need to comply with anti-money laundering standards and know-your-customer standards enforced by the country’s financial intelligence agency, Austrac, as stated in the CoinDesk report.
Although ASIC has not issued any relevant regulation for crypto exchanges, it did publish guidelines last year for those businesses that wanted to conduct ICOs. Australia has already seen a public firm seeking to raise capital via a token sale in order to fund the launch of a crypto exchange. Thus ASIC’s plan is indeed a timely one.
James Shipton, ASIC chairman said that they have a significant role in driving the behaviors of cryptocurrency exchanges that will build and restore trust amongst investors. He added that AISC intends to achieve this by being a strategic and forceful regulator, as mentioned in the corporate plan. He further added that the ASIC will be accelerating enforcement outcomes and will also be implementing new supervisory approaches.
The post ASIC To Adopt New Approach While Regulating Cryptocurrency Exchanges appeared first on OWLT Market.
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