Australia’s securities regulator, the Australian Securities and Investments Commission (ASIC), has proposed tighter oversight of the cryptocurrency market to enhance consumer protection.
In its Consultation Paper 381, released on December 4, ASIC outlines plans to address regulatory gaps for stablecoins, wrapped tokens, and other crypto products, ensuring compliance with existing financial laws.
ASIC Commissioner Alan Kirkland emphasized the need for “responsible financial innovation” within a well-regulated system that benefits all Australians. The proposal introduces 13 examples illustrating how current financial product definitions could apply to cryptocurrencies.
It also suggests regulatory relief measures, transitional approaches, and a potential “no action” policy for firms working on licensing compliance. Public consultation on these proposals is open until February 28, 2025, with finalized guidance expected mid-year.
In parallel, Australia’s Treasury is evaluating its crypto taxation framework, considering the OECD’s Crypto Asset Reporting Framework (CARF) or a customized approach. CARF aims to increase tax transparency by collecting and sharing data on significant crypto transactions globally.
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