Australian Securities Regulator Releases Cryptocurrency, Mining, ICO Guidelines

The Australian Securities and Investment Commission published new initial coin offering and cryptocurrency guidelines on its official website on May 30.

The regulator detailed the prerequisites that a cryptocurrency business needs to follow in order to comply with both the Australian Corporations and ASIC Acts, but did not cover regulations enforced by other national institutions.

Notably, the guideline specified that if a crypto asset is a financial product, then the issuer and firms dealing with it are required to hold an Australian financial services license.

"Where miners and transaction processors are part of the clearing and settlement process for tokens that are financial products Australian laws apply."

"Businesses offering crypto-assets, or offering services in relation to crypto assets, need to undertake appropriate inquiries to satisfy themselves they are complying with all relevant Australian laws."

Lastly, the ASIC also noted that Know Your Client and Anti-Money Laundering norms apply to crypto assets, as does the Australian Consumer Law, including cases when the assets are issued or managed from abroad. As Cointelegraph reported earlier this week, the ASIC has warned the public that crypto project OneCoin "Could be involved in a scam."

At the end of April, Australia's tax agency, the Australian Tax Office, confirmed that it will seek to contact cryptocurrency traders personally about tax issues as part of a new data collection scheme.