2021-10-30 18:49 |
The Australia Securities and Investments Commission (ASIC) has offered guidelines for organizations to issue exchange-traded products (ETPs) based on cryptos. ASIC published a set of regulatory requirements that funds interested in launching ETPs should adhere to earlier today. The guidelines cover the issuance of multiple ETPs, including exchange-traded funds (ETFs) and structured products.
According to the guide, ASIC permits funds to launch funds on Bitcoin (BTC/USD) and Ethereum (ETH/USD) because they are suitable underlying assets for ETPs. The agency added that it expects the number of assets that meet requirements to become underlying assets for ETPs to increase over time.
Outlining the requirements digital assets must meet before joining BTC and ETH, ASIC noted that they must obtain a high level of institutional support, a mature spot market, and a regulated futures market. On top of this, cryptos must have reputable and experienced service providers, as well as transparent pricing mechanisms.
The publication further noted that at the application stage of each ETP, licensed exchanges would have to evaluate whether the issuer meets obligations concerning the product. These obligations include offering safe custody for assets and securing the relevant licenses.
Fostering fair competitionASIC published this guideline following public consultation and industry guidance, which it initiated in June. In response to public consultation, the regulator said it will not require firms that launch crypto ETPs to use custody organizations in Australia. According to ASIC, this provision seeks to foster competition.
Specifically, the watchdog noted that,
While we acknowledge concerns raised by respondents about overseas-based custody of crypto assets such as the potential for difficulties in recovering assets across jurisdictions, we consider it would be inappropriate to mandate a domestic custodian requirement.
This news comes on the heels of Cosmos Asset Management, an Australian hedge fund manager, launching an ETF linked to crypto mining on Chi-X Australia on October 28.
Dubbed Cosmos Global Digital Miners Access, the ETF trades under the ticker symbol DIGA. The product tracks multiple firms, including, but not limited to, Riot Blockchain, Marathon Digital, Hive Blockchain Technologies, and Hut 8 Mining.
BetaShares, a renowned ETF provider in Australia, is gearing up to roll out a crypto ETF linked to industry companies, such as Coinbase and MicroStrategy. The ETF is set to debut on the Australian Exchange Commission (ASX) under the ticker symbol CRYP in the coming week.
Meanwhile, the SEC has only approved one BTC futures ETF, with another 40 applications awaiting the regulator’s judgment.
The post ASIC issues regulatory guidelines for crypto exchange-traded products appeared first on Invezz.
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