The Australian Securities and Investments Commission (ASIC) has issued its response to the public consultation on the products of cryptocurrency exchanges (ETPs) along with new industry guidance.
On October 29, the regulator published a set of regulatory requirements for funds seeking to offer cryptocurrency ETPs, including exchange traded funds (ETFs) and structured products, following months of industry consultations that began in late June.
According to the official guide, ASIC has so far given the green light to ETPs based on major cryptocurrencies such as Bitcoin (BTC) and Ether (ETH) and expects more cryptocurrency assets to become a basis for ETPs in the future. :
“In October 2021, it seems likely that Bitcoin and Ether will satisfy the five factors identified above to determine the appropriate underlying assets for an ETP. We expect the range of non-financial product crypto assets that can satisfy these factors to expand over time. “
To become a suitable foundation for a cryptocurrency ETF, crypto assets must obtain a high level of institutional support, a mature spot market, a regulated futures market, reputable and experienced service providers and transparent pricing mechanisms, it read. in the guide.
For each cryptocurrency ETF product application, licensed exchanges must assess whether the issuer can meet its obligations in relation to the product, including providing a safe and protected custody as well as obtaining the pertinent licenses.
In response to the public query, the ASIC also said that it does not require national crypto custody for entities that issue cryptocurrency ETFs, noting that such restrictions would unfairly limit competition.
The document says “While we acknowledge the concerns raised by respondents about the custody of crypto assets abroad, such as the potential for difficulties in recovering assets in all jurisdictions, we consider that it would be inappropriate to impose a domestic custody requirement.”
The news comes shortly after Australian hedge fund manager Cosmos Asset Management debuted its crypto-mining ETF in Chi-X Australia on October 28. The Cosmos Global Digital Miners Access ETF started trading under the DIGA ticker and follows various companies such as Riot Blockchain, Marathon Digital, Hive Blockchain Technologies, Hut 8 Mining, and others.
Australian ETF provider BetaShares is also preparing to launch a cryptocurrency ETF tied to industry companies such as Coinbase and MicroStrategy. The cryptocurrency ETF will start trading on the Australian Stock Exchange with the ticker CRYP next week.
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