Australian authorities report the possibility of creating Bitcoin (BTC) and Ethereum (ETH) ETPs

Sat 30 Oct 2021 ▪ 22h17 ▪ 3 min read — by Mary Anderson

Australia does not seem to be very proactive with crypto, and therefore no one has ever imagined crypto-based ETPs in this country before. However, times are changing, as the recent statement of the Australian Securities and Investments Commission (ASIC) shows. It contains a set of criteria that cryptocurrencies must adhere to in order to create an ETP.

ASIC’s list of regulatory requirements for a crypto ETP

It is worth noting that Australia is very cautious about digital assets, so no drastic actions are expected. Thus, before approving crypto-based ETPs, the country’s authorities decided to issue a guide with the regulatory requirements for digital assets. At the same time, the government claims that these actions are aimed at protecting investors and increasing transparency.

Among all the criteria, ASIC highlighted the five most important. So, according to the commission, in order to create a crypto ETP, the currency must have a sufficient level of institutional support. Plus, various reputable service providers related to this cryptocurrency and prepared to support ETPs should be available to clients. Further, ASIC noted that mature spot and regulated futures markets should be formed around this cryptocurrency. Finally, Price mechanisms should be robust and transparent for investors throughout the trading day.

According to ASIC, such regulatory requirements will ensure a fair, orderly and transparent crypto market. They also stressed that none of the cryptocurrencies that cannot comply with these rules will be supported within the ETP structure. It will help to combat attempts to manipulate prices.

Also, ASIC has confirmed that Bitcoin and Ethereum fully comply with all of the requirements, which means that exchange products based on these cryptocurrencies are possible. However, ASIC did not comment on other digital assets, although it may as well do so in the future.

Australian transparent crypto ecosystem

The demand for crypto ETPs in Australia has been around for quite some time. Moreover, with the launch of the first Bitcoin ETF on the New York Stock Exchange, cryptocurrencies have become even more popular in Australia. Yet, numerous disputes regarding their security have flared up.

That is why many countries are now trying to solve problems associated with the approval of crypto ETPs. And, of course, Australia is no exception to this rule. Australian authorities claim that they are making every effort to create the most investor-friendly, transparent, and reliable regulatory framework for the cryptocurrency ecosystem of the country.

Mary Anderson

I am sure that crypto assets are a new type of economy. We are at the origins of the crypto revolution. Right now, it is worth studying what cryptocurrencies and the blockchain are in order to make the most of this knowledge and these skills in the future.


The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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