Australia to introduce new regulations requiring most crypto-related companies to obtain financial services licenses

Australia will introduce new regulations that will require crypto-related companies to obtain financial services licenses under the Corporations Act. On Monday, Australian Securities and Investments Commission (ASIC) Commissioner Alan Kirkland said at the AFR Digital Asset Summit that many crypto asset companies in Australia will need to obtain licenses. He said that under current laws, ASIC considers several crypto assets to be financial products. ASIC's regulatory framework focuses on "financial products" that involve financial investments, risk management or non-cash transactions. However, some aspects of cryptocurrencies do not fully fit this model. This has created uncertainty as to whether specific crypto structures require a license. According to legal advice, many cryptocurrency developers have not yet obtained an Australian Financial Services License (AFSL), a decision based on the idea that their investment products do not fall under the jurisdiction of current laws. To address this issue, ASIC plans to update guidance by November to clarify the classification and treatment of specific crypto tokens that represent digital ownership and related products. In addition, Kirkland pointed out ASIC's concerns about potential consumer harm and market misconduct. He said that issuing licenses will help reduce risks, build consumer trust and protect market integrity. (Cryptonews)