Regulating Digital Assets
Recently, Treasury outlined its vision for the future in a consultation paper titled “Regulating Digital Asset Platforms,” which aims to formulate a regulatory framework for entities facilitating access to, and holding of digital assets for Australians and local businesses.
Driven by the competing (and sometimes conflicting) objectives of mitigating consumer-associated risks and promoting innovation in digital assets and emerging technologies, the paper outlines the design of a secure digital asset ecosystem encompassing critical functions, licensing obligations, and facility contracts.
Treasury’s proposal addresses the operational model of ‘multi-function platforms that hold assets for customers’ (digital asset platforms), which are identified as common conduits for consumer-related issues. These include the dominant players in the digital asset market in terms of transaction volume and customer numbers, as well as brokers and intermediaries engaged in ‘asset-backed token’ arrangement.
For a more detailed analysis please read our article titled “A digital safety-net”.
For advice businesses, particularly those dealing with clients’ cryptocurrency or other digital assets, this change could bring a level of reassurance that is necessary before digital assets become mainstream financial products.
Diligent. Erudite. Relentless. Financial services is highly regulated and frequently changing global industry.It’s critical to have access to Compliance Gurus that #seemore and #seefurther. This is the Team that will help you anticipate, and stay ahead of, regulatory changes.