ASIC to Mandate Financial Services Licenses for Crypto Companies, Plans to Clarify Bitcoin Classification by November

COINOTAG reported on September 23 that during the AFR Digital Asset Summit, Alan Kirkland, a representative from the Australian Securities and Investments Commission (ASIC), disclosed that numerous crypto asset companies will soon be required to secure financial services licenses under the Corporations Act. ASIC posits that some crypto assets ought to be recognized as financial products, although there remains considerable ambiguity due to the unique nature of the cryptocurrency sector and its divergence from existing regulatory frameworks. Accordingly, ASIC aims to revise its guidelines by November to elucidate how various crypto tokens should be classified and managed. Kirkland underscored ASIC’s anxieties regarding potential consumer harm and market malpractices. He noted that implementing a licensing regime is anticipated to mitigate these risks, bolster consumer trust, and safeguard market integrity.