ICO legalization in Australia! Digital cryptocurrency related regulations

ICO legalization in Australia! Digital cryptocurrency related regulations

The ICO and digital asset trading regulations introduced this time mainly include the following parts:

1. Requirements and precautions for the company to provide cryptocurrency assets through ICO

2. The company's requirements for ICO and cryptographic asset promotion methods

3. ICO as a compliance requirement for financial products

4. Requirements for compliance operations of financial markets in the digital asset exchange

5. Government definition and regulation of cryptocurrency

6. Definition of the ownership of Australian companies in overseas ICO or encrypted assets

Today, digital cryptocurrencies are rapidly evolving around the world, and different countries have different attitudes toward encrypted digital currencies. Most developed countries reject the monetary attributes of digital currencies, but recognize the commodity attributes of digital currencies and support the development and application of blockchain technology.

The Libra digital currency issuance program announced by Facebook in June 2019 caused global discussions on digital currencies, which led to a collective increase in the price of all digital currencies, including bitcoin, and also caused developed countries such as the European Union and the United States. Concerns about digital currency in financial regulation, privacy, consumer protection and resistance to systemic financial risks.

At present, most countries are cautious and opposed to Libra's plan to issue currency. On the one hand, there are no clear laws and regulations on digital currency in different countries and regions, and on the other hand, concerns about the future digital currency impact on national sovereign currency. At the same time, some companies and industry associations related to digital currencies also hope to introduce clear laws and regulations as soon as possible to obtain the right to operate legally.

The current ICO and digital asset regulations in Australia specify the relevant materials that the company should provide and continuously disclose when conducting ICO. Digital encryption companies must comply with Australian-related laws, including the Corporate Law, the ASIC Act, the Australian Consumer Law, and Anti-Money Laundering (AML) and understand your customers (KYC). When the company conducts ICO as a financial product, the company must hold the Australian AFS license. When the ICO is not used as a financial product, it must also provide the relevant regulatory authorities with reasons for non-financial products, and there must be no misleading or deceptive behavior.

From the rise in bitcoin prices to the subsequent wave of ICO, Australia did not express a clear attitude towards encrypting digital currencies. The latest regulations have made Australian companies more clearly defined in the ICO process and encrypted digital assets, and the compliance of the encrypted digital currency companies with the relevant regulations has become evident and legally protected. (Zone 31)

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