ASIC consults on crypto-based ETPs

The Australian Securities and Investments Commission (ASIC) has announced the release of its consultation paper seeking feedback about exchange traded products (ETPs) and other investment products providing retail investors with exposure to crypto assets. 

The corporate regulator said that, given the “unique evolving characteristics and risks involved with crypto assets” it deemed it appropriate to consult widely on the proposals as these products would need to be recognised by market operators and product issuers and meet existing regulatory obligations. 

The paper would on the following key areas for market operators and issuers: 

  • Identifying crypto-assets that are appropriate underlying assets; and 
  • Establishing good practice in respect of pricing, custody, risk management, and disclosure. 
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Other investment products covered by CP 343 Crypto-assets as underlying assets for ETPs and other investment products were listed investment companies, listed investment trusts and unlisted registered managed investment schemes. 

ASIC Commissioner Cathie Armour 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.” 

ASIC therefore would welcome submissions on CP 343 from all interested parties by Tuesday 27 July, 2021. 

The final information on good practices would be published shortly afterwards. 

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