- Australia‘s financial regulator advocates regulating crypto based on economic function, not as a separate asset class.
- The approach avoids a standalone crypto law, instead amending existing financial services and corporations acts.
- ASIC guidance states consumer harm stems mainly from intermediary platforms, not the tokens themselves.
- Decentralized offerings present classification challenges, but regulators can target identifiable controlling parties.
In a major policy speech, the fintech chief at Australian Securities and Investments Commission (ASIC) argued that crypto assets should be regulated based on their economic substance, not their technological form. Rhys Bollen presented this view at the Melbourne Money & Finance Conference, stating blockchain performs existing financial functions.
Consequently, tokenized securities should fall under securities laws, while stablecoins trigger payment services legislation. However, this functional approach contrasts with crypto-specific frameworks like the CLARITY Act in the US and MiCA in Europe.
Bollen said, “Digital assets largely represent new technological instances of longstanding financial activities” in a recent article. Meanwhile, Australia’s main legislative effort, the Digital Asset Framework bill, seeks only to amend the Corporations Act.
The regulator’s guidance, ASIC Information Sheet 225, confirms digital assets can be regulated as financial products when they function as securities or payment facilities. This focus on economic characteristics aims to provide clearer rules and reduce regulatory arbitrage.
Most consumer harm stems from the conduct of crypto platforms offering custody or trading services, according to Bollen. Meanwhile, decentralized products remain tricky, though analysis should focus on practical control rather than formal claims of decentralization.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
