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

BlockDAG’s Presale Achieves $9.9M: Aiming For A 5000-Fold ROI As Cardano’s Price Rises And Fantom Launches Sonic

Explore Cardano’s surge, Sonic’s efficiency, and why BlockDAG’s growth makes it the top crypto choice. A deep dive into the future of blockchain investments.

Digital Assets

US, UK probe $20 billion Tether transfers tied to Russian exchange.

U.S. and UK authorities are investigating the movement of $20 billion in the USD-pegged stablecoin tether (USDT) through Moscow-based exchange Garantex.

Digital Assets

BlockDAG Presale Raises $9.9M as Batch 5 Nears Sell-Out Amid Bonk’s Fluctuating Trading Volume & Spell’s Bullish Price

Explore BONK’s trading volume, SPELL’s market shifts, and why BlockDAG’s 10,000 ROI makes it an ideal crypto for savvy investors in 2024.

Digital Assets

Bybit expands into Europe amid regulatory scrutiny

Dubai-based cryptocurrency exchange Bybit is expanding its operations in Europe after encountering regulatory challenges in Hong Kong.

Digital Assets

Cathie Wood’s sponsored Bitcoin ETF sees historic $200 million inflows

The ARK 21Shares Bitcoin ETF (ARKB), co-sponsored by Cathie Wood’s ARK Invest, registered historic inflows exceeding $200 million on Wednesday, signaling a robust appetite among investors for Bitcoin-centric investments.

Digital Assets

Sam Bankman-Fried might see his 25-year sentence halved

Sam Bankman-Fried, the founder of the failed cryptocurrency exchange FTX, was sentenced to 25 years in federal prison by a Manhattan court on Thursday. This comes after he was convicted of defrauding customers and investors, with Judge Lewis Kaplan highlighting the potential future risks posed by Bankman-Fried.

Technical Analysis

EURJPY Technical Analysis Report 28 March, 2024

EURJPY currency pair under the bearish pressure after the pair reversed down from the major resistance level 164.25, which also stopped the sharp weekly uptrend at the end of last year,

Digital Assets

BlockDAG’s Presale Hits $9.9M, MultiversX & MINA Price Predictions Show Green

Read about BlockDAG’s promising $10 prediction and insights on MultiversX Price Prediction as MINA’s potential unfolds.

Digital Assets

Rockstar Co-Founder and All-star Line Up Join Advisory Board to Take Metacade into Post Beta Orbit

Metacade, the revolutionary Web3 gaming platform, prepares to streak out of beta with a slew of ground-breaking initiatives that will redefine the way blockchain games are developed.

<