ASIC Seeks Public Feedback on Crypto ETPs

As the demand for crypto-based Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term-traded products (ETPs) is increasing, the Australian financial markets watchdog is seeking public feedback on such retail investment instruments.

The Australian Securities and Investments Commission (ASIC) released a consultation paper on Wednesday that covers ‘crypto-assets as underlying assets for ETPs and other investment products'. The regulator thinks these products have unique features and risks that need to be recognized by market operators and product issuers.

The key areas where the consultation paper needs feedback are on identifying crypto-assets that are appropriate underlying assets and establishing good practice in respect of pricing, custody, Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term and disclosure.

“The proposals set out good practices for market operators and product issuers regarding crypto-asset ETPs and other investment vehicles that provide retail investors with exposure to crypto-assets,” ASIC Commissioner Cathie Armour said in a statement.

The Aussie regulator will continue to accept feedback until July 27 and then issue a feedback report. In addition, it is planning to publish ‘final information’ on good market practices.

“Market operators and product issuers need to be mindful of meeting their existing regulatory obligations when creating, operating and allowing such products, so they can be facilitated in a way that maintains investor protections and Australia’s fair, orderly and transparent markets,” Armour added.

Push for Crypto Investment Products

While Australia is still in the consultation stage for approving crypto ETPs, these products have boomed in other jurisdictions, especially Europe. Several European stock exchanges have listed crypto-linked ETPs, and these products are gaining a lot of popularity as well.

However, one of the major targets for the crypto industry to gain approval for a Bitcoin exchange-traded fund (ETF) in the United States, which still seems to be nowhere near its goal even after years of push.