ASIC to keep monitoring threats of harm related to cryptocurrencies

Maria Nikolova

The regulator says it is developing its approach for applying the principles for regulating market infrastructure providers to crypto exchanges.

The Australian Securities & Investments Commission (ASIC) has earlier today published its Corporate Plan 2018-2022, with emerging products being in the focus of the regulator.

For 2018–19, the regulator has named several areas that need its particular attention – based on ASIC’s understanding of the operating environment and its strategic planning framework.

ASIC has identified potential harms from technology driven by the growing digital environment and structural changes in financial services and markets. The regulator says it will continue to focus on monitoring threats of harm from emerging products (e.g. ICOs and crypto currencies), cyber resilience, the adequate management of technological solutions by firms and markets, and misconduct that is facilitated by or through digital and/or cyber-based mechanisms.

The regulator says it is working on a new project and that it is developing its approach for applying the principles for regulating market infrastructure providers to crypto exchanges. ASIC is also monitoring emerging products, such as ICOs, and intervening where there is poor behaviour and potential harm to consumers and investors.

With regard to earlier efforts by ASIC in this direction, the regulator says it has formed internal cross-team working groups to better coordinate the work across ASIC on implementing new supervisory approaches – e.g. the new approach for regularly placing ASIC staff onsite in major financial institutions – and in relation to illegal phoenix activity, poor practices in the insurance sector, cryptocurrencies, corporate governance, older Australians, small business, and foreign financial service providers.

In April this year, the Australian regulator indicated it would be adopting a stricter stance on ICOs. ASIC Commissioner John Price warned about the opportunistic mood dominating in ICOs – including businesses or people looking to undertake an ICO because it is seen as an easy, low regulation and low cost option which could lead to immature businesses coming to market.

Let’s note that digital currency exchange businesses are required to register with Australia’s financial intelligence agency AUSTRAC. Under the new regulation, digital currency exchange (DCE) providers are required to:

  • enroll and register with AUSTRAC;
  • establish, implement and maintain an AML/CTF program, which sets the framework for businesses to comply with their obligations, including customer due diligence requirements;
  • report threshold transactions and suspicious matters to AUSTRAC, and
  • keep appropriate records.

But registration by AUSTRAC of a digital currency exchange or remittance service provider does not constitute endorsement of that business or compliance with any anti-money laundering and counter-terrorism financing (AML/CTF) obligations. DCE providers are not allowed to put AUSTRAC’s logo on their websites even if they are registered.

Read this next

Digital Assets

TRON approves Wintermute to mint, burn USDD stablecoin

TRON Reserve DAO has welcomed crypto market-making giant Wintermute as the ninth member and whitelisted institution to mint Tron network’s stablecoin, Decentralized USD (USDD).

Metaverse Gaming NFT

Nas Academy and Invisible College introduce innovative model for Web3 education

Singapore-based online learning platform, Nas Academy is joining forces with Invisible College to teach people everything they need to know about the Web3.

Digital Assets

Top exec at BitMEX pled guilty US Bank Act violations, pays $150K fine

BitMEX’s head of business development, Gregory Dwyer pled guilty to violating the US Bank Secrecy Act (BSA) and allowing customers to use the platform to circumvent the federal anti-money laundering rules.

Retail FX

CySEC slaps €150,000 fine on FXBFI, operator of 101investing brand

The Cyprus Securities and Exchange Commission (CySEC) today announced that it has reached a settlement with FXBFI Broker Financial Invest Ltd, trading as 101investing, ordering the firm to pay €150,000 for violating the Investment Services and Activities and Regulated Markets Law.

Retail FX

X Open Hub expands multi-asset offering with new cryptocurrencies and indices

X Open Hub, a multi-asset liquidity provider, announced today that it has extended its offering with inclusion of 30 new cryptocurrencies and two emerging market indices.

Retail FX

Interactive Brokers now offers 24/7 access to crypto trading

Interactive Brokers Group, Inc. (NASDAQ: IBKR) has widened access to cryptocurrency trading for its clients. Specifically, the discount broker extended trading hours for its cryptocurrency products to be traded 24/7, including on the weekends.

Inside View

Natural Language Generation for Multi-Language Social Media Strategies 

Natural Language Generation (NLG) is a crucial growth area in the digital landscape, with the unique potential to be used across multiple industries.

Market News, Technology

The B2Core Android App is Now Available For Download

The first version of the B2Core Android app is available for download, and it has many beneficial features for users.

Digital Assets

XBO taps custodian Fireblocks ahead of crypto exchange’s launch

XBO.com has integrated with digital asset and crypto technology platform Fireblocks ahead of the crypto exchange’s upcoming launch.

<