PANews reported on September 23 that according to Cryptonews, Australia will introduce new regulations requiring crypto-related companies to obtain financial services licenses under the Corporations Act. On Monday, Alan Kirkland, a member of the Australian Securities and Investments Commission (ASIC), said at the AFR Digital Asset Summit that many crypto asset companies in Australia will need to obtain licenses. He said that under current laws, ASIC considers several crypto assets as financial products.

ASIC’s regulatory framework focuses on “financial products” that involve financial investments, risk management or non-cash transactions. However, some aspects of cryptocurrencies do not fit neatly into this model. This has created uncertainty as to whether specific crypto structures require a licence. According to legal advice, many cryptocurrency developers have yet to obtain an Australian Financial Services License (AFSL), a decision based on the idea that their investment products do not fall under the jurisdiction of existing laws. To address this, ASIC plans to update guidance by November to clarify the classification and treatment of specific crypto tokens representing digital ownership and related products.

In addition, Kirkland pointed out ASIC's concerns about potential consumer harm and market misconduct. He said the issuance of licenses will help reduce risks, build consumer trust and protect market integrity.