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Australia’s corporate overseer has published revised guidelines on digital assets, a move welcomed by blockchain leaders yet raising concerns regarding the rapid issuance of licenses.
The Australian Securities and Investments Commission revised its Info Sheet 225 on Wednesday, declaring that companies providing crypto services recognized as financial products must become a member of the Australian Financial Complaints Authority and apply for an Australian Financial Services License by June 30.
Bitcoin not deemed a financial product
John Bassilios, a crypto attorney and partner at Hall & Wilcox, informed Cointelegraph that according to the new guidelines, assets such as Bitcoin (BTC), gaming non-fungible tokens, and tokenized concert tickets are unlikely to qualify as financial products.
“If you’re an exchange focusing solely on Bitcoin, then you are not required to seek a license based on this guidance,” he mentioned.
Nonetheless, stablecoins, wrapped tokens, tokenized securities, and digital asset wallets are among the items ASIC recognizes as financial products in its revised guidelines.
Bassilios stated this could also encompass yield-bearing stablecoins, tokenized real estate, tokenized bonds, and staking as a service, which may include conditions like a minimum staking amount or lock-up duration.
ASIC also indicated that it has made a preliminary decision to provide regulatory relief for stablecoin and certain wrapped token distributors to facilitate the transition to anticipated legislative reforms.
Guidance offers clarity, but structural challenges persist
Steve Vallas, the CEO of the advisory firm Blockchain APAC, conveyed to Cointelegraph that the updated guidance establishes a rigorous standard demanding substantial synchronization across all policies, laws, and industries for execution.
“ASIC has opted to implement policy in advance of legislative reform. This strategy brings short-term certainty but also reveals how much interpretation is now substituting the function of the law,” he elaborated.
Vallas asserted the true challenge will now rest in execution, as “structural bottlenecks” are likely to pose problems.
“These include limited recognized local expertise, access to banking, and insurance capacity. Without pragmatic solutions, compliance risks may shift from a legal issue to a logistical one,” he stated.
Guidance appreciated and long-desired
Amy-Rose Goodey, the CEO of the advocacy organization the Digital Economy Council of Australia, shared with Cointelegraph that the sector had been anticipating clarity like this for an extended period.
“It provides us with an indication and transparency regarding ASIC’s stance, how they plan to treat enterprises within the digital asset sector, which we were not fully aware of until now,” she noted.
However, Goody concurs there remain apprehensions about ASIC’s resources and its capability to process numerous licenses promptly, ensuring corporate compliance.
Related: Young Australians’ greatest financial regret: Overlooking Bitcoin at $400
The industry is presently in a “transition phase,” according to Goody, with organizations restructuring and reassessing the licenses they are obligated to maintain.
The Albanese government recommended a new crypto framework regulating exchanges under the existing financial services regulations in March, with the Treasury concluding a consultation on Friday regarding draft legislation that would broaden finance sector regulations to crypto service providers.
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