The Australian Securities and Investments Commission (ASIC) has released important updates to its guidance in INFO 225 on the regulation of digital assets, including in relation to digital asset exchanges, digital wallets, tokenisation, and offshore digital asset businesses promoting, selling or providing services in relation to digital assets in Australia. The significance of these updates is that, if a digital asset is a “financial product,” the entity issuing, dealing in, advising on, or providing a custodial service in relation to (amongst other things) must hold an Australian financial services licence (AFSL) and otherwise comply with the conduct and disclosure obligations under Chapter 7 of the Corporations Act 2001 (Cth) subject to the exemptions. Further, digital asset exchanges trading digital assets characterised as financial products will need an Australian market licence subject to relevant exemptions, and, depending on how transactions in digital assets that are financial products are cleared and/or settled, a clearing and settlement (CS) facility licence may be required by the operator of such a facility.
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