Australian Regulator Creates Crypto Exchange Rules To Protect Financial System

The Australian Securities and Investments Commission (ASIC) has once again revealed their doubts towards ICOs and cryptocurrencies, and plan to keep a close eye on all crypto-related transactions in the country.

The ASIC has developed new rules for cryptocurrency exchanges as seen in a 2018 to 2022 Corporate Plan released on Friday.

According to the released document, ASIC has identified areas with the potential to cause the most significant harms to the financial system of the country, placing technologies such as ICOs and cryptocurrencies as the first on the monitoring list.

“We will continue to focus on monitoring threats of harm from emerging products (e.g., ICOs and cryptocurrencies), cyber resilience, the adequate management of technological solutions by firms and markets, and misconduct that is facilitated by or through digital and/or cyber-based mechanisms,” ASIC stated in the document.

The commission plan on starting a new project before the end of 2019 which would be focused on the development of an approach for applying the regulating principles for market infrastructure providers to crypto exchanges.

Action Against Misleading and Fraudulent ICOs

While this decision would have some investors feeling concerned, ASIC has always made their good intentions for the financial system known to the public.

This is not the first time they are displaying doubts over ICOs and all things relating to crypto. Back in May 2018, ASIC decided to come down hard on all suspicious ICOs.

The Commission has been making inquiries on token issuers, forcing them to discontinue their ICOs or modify the existing structure to comply with the Australian law.

Following their history with crypto-related activities, it is expected that they would make more rules to make the financial system safer, protecting it from the potential negative impact of fraudulent ICOs and cryptocurrencies.

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