Australia’s Regulator Rolls out Positive Guidelines for Crypto ETPs

Australia is definitely among those countries that wish crypto well and want to become available in shaping the future with decentralized finance and welcoming crypto amid their financial realms. Multiple governors and Senate members have vouched for crypto in Australia from time to time, and the overall sentiment remains positive. Recently the securities regulator in Australia has released a set of guidelines for Bitcoin and Ethereum exchange-traded products. At first glance, these guidelines look promising and generally positive for the crypto market.

These exchange-traded products will be able to track the performance of Bitcoin and other cryptocurrencies and will allow investors to invest in them in a safe fashion. These guidelines will be provided to and enforced by funds that wish to offer crypto-oriented exchange-traded products. These guidelines promote not only the protection of the investor but facilitate transparency. There are five general criteria that cryptocurrency must meet to qualify as an asset and should be able to reach the standard of an asset that can be backed by an exchange-traded product.

Australia to Regulate Crypto Products

Some of them include; the crypto should be generously popular and be used for investment purposes. Should have enough service providers such as fund administrators, market makers, and index providers that are not only experienced but reputable as well. These should be prepared to support exchange-traded products which offer exposure to a certain crypto commodity. The crypto must have a mature spot market.

There should be a present regulated futures market for the very purpose of trading in derivatives that are somehow linked to the cryptocurrency. The price mechanisms for these cryptocurrencies should be upbeat and very transparent throughout the trading day. These are the five points that are being introduced by the Australian Regulatory Commission, and anyone who wishes to take part in exchange-traded products and exchange-traded funds must oblige by these points. Australia is taking a very mature approach with the crypto market devising these rules and guidelines, which are not only in place to benefit the investor but also secure the investment that they have made.

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