Treasury consults on new crypto asset licensing regime
On 21 March, the Treasury released a consultation paper about the regulation of secondary service providers of cryptocurrency assets (CSSPs). The consultation paper highlights the current ‘patchwork’ nature of regulation of crypto assets, noting that some crypto assets may already be subject to the existing Australian Financial Services (AFS) or consumer law frameworks.
The paper proposes regulating CSSPs through a new licensing regime which includes existing duties under the current AFS regime but with a bespoke set of duties and obligations tailored to the nature of, and risks posed by, CSSPs.
In this update, Wotton + Kearney’s Cain Jackson, Raisa Conchin, Suzanne Craig and Samantha Younane explain the implications of this regulatory reform for insurers.
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