Australian Market Regulator ASIC Seeking Public Feedback on Crypto ETPs

As the demand for exchange-traded products, ETPs based on crypto is increasing, the Australian financial markets regulator ASIC is seeking public feedback on Crypto ETPs. In the consultation paper released on Wednesday by the Australian Securities and Investments Commission, the crypto assets are covered as underlying assets for ETPs and other investment products.

ASIC Looking For Public Feedback on Crypto ETPs

ASIC thinks that these crypto EPTs possess distinct features, characteristics, and risks that are required to be recognized by the operators in the market and issuers of the product. 

Talking about the main areas in which the consultation is looking forward to getting feedback are on the identification of crypto assets that are suitable underlying assets and setting up good practice in respect of pricing, custody, risk management, and disclosure.

Cathie Armour, the Commissioner of ASIC, said:

“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.”

In addition to this, Armour addressed the requirement of meeting existing regulations while operating and giving allowance to such products and said:

“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.”

The Boom in Exchange-Traded Products

Though Australia may still be in the consulting phase for the approval of crypto ETPs, in Europe, these investments products have surged in other authorities.

Various European stock exchanges have listed ETPs linked to cryptocurrencies and there is no denying the fact that these products are gaining a lot of popularity as well. 

Well, at present, the major goal of the crypto industry is to acquire approval for a Bitcoin ETF in the United States, which is really far from its target at present.