New Crypto-Product Guidelines Asserted by ASIC

e_abrams

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Dec 11, 2020
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Australia’ASIC has released fresh trading guidelines and requirements for crypto exchange-traded products. These new rules will also apply to similar investment products that can end up being listed as crypto-related instruments on the nation’s exchanges. The reveal came this Friday. ASIC has included the term “crypto asset” in its licensing platform, giving legitimacy to crypto service providers.

The Australian Securities and Investments Commission guidelines give special attention to pricing methodologies, risk management strategies, monitoring standards, admission standards, and crypto custody practices. All these requirements as well as the more minor ones will be condicted acording to industry set market practices.

Another major concern is the storage of private key in relation to crypocurrency custody. The regulator states that the most effective strategy is to move these key to a cold storage – keepig the asset offlne for the time being. Furthermore, companies will be required to make backups and keep them in isolated and separate places.

The timing of these guidelines should not come as a surprise seeing that ASIC has been keeping an active discourse since June. The direct agent of this is the active interest among Aussie investors in crypto trading.

For now, these new rules will apply solely to BTC and ETH, although ASIC will be increasing the number as the time passes.
Source
Considering the rising popularity - and price - of cryptocurrencies, it's only natural that government agencies take a closer look at their regulations and expand or change the existing ones.