ASIC new proposals regarding regulatory expectations Consultation Paper 343: Crypto-assets as underlying assets for ETPs and other investment products CP 343 ETP
Proposals for consultation
CP 343 sets the scene by outlining the fundamental challenges associated with understanding crypto assets as an appropriate underlying asset class, including how product issuers can maintain compliance with existing regulatory frameworks with respect to custody, risk management and disclosure. The consultation paper addresses four broad proposal categories on which ASIC seeks comment.
Context for consultation
Senate Select Committee on Australia as a Technology and Financial Centre Committee
While ASIC notes the Committee’s review, ASIC acknowledges that it does not seek to pre-empt the outcome of any such review and does not comment on the regulatory status of any crypto assets. Rather, CP 343 is limited to proposing good practices for ETPs and other investment products providing exposure to crypto assets under the current regulatory framework. That is, ASIC is consulting on best practice for ETPs and other investment products, which are regulated by ASIC under the Corporations Act 2001 (Cth), where such ETPs and other investment products provide exposure to crypto assets. Regardless, CP 343 is a welcome insight into ASIC’s key focuses for market operators and issuers of ETPs and other investment products and is a clear indication that ASIC is considering the intersection of crypto and regulated products.
What next?
The deadline for comments on CP 343 is slated for 27 July 2021.
Please be in touch with our Fintech + Financial Services Team should you wish to discuss.