Australian Securities & Investments Commission

Australia bolsters crypto watchdogs in ”multi-stage’ plan to fight scams

The new measures from the Australian government come as cryptocurrency scams skyrocketed 162% to $221 million in 2022.

The Australian government is bolstering its market regulator’s digital asset team as part of a “multi-stage approach” aimed at clamping down on crypto and ensuring proper risk disclosures from crypto firms.

A Feb. 2 joint statement by Australian Treasurer Jim Chalmers and Assistant Treasurer Stephen Jones explained that the new measures are aimed at protecting consumers dealing with cryptocurrency.

The treasurers said the multi-stage approach would involve three elements, including strengthening enforcement, bolstering consumer protection, and establishing a framework for its token mapping reform.

One of the main changes will be an increase in the size of the Australian Securities & Investments Commission (ASIC)’s digital assets team and “upping enforcement measures.”

Chalmers and Jones said ASIC would focus on ensuring risks to consumers by crypto products and service providers are appropriately disclosed.

Cointelegraph reached out to ASIC to find out how many additional positions will be filled but did not receive an immediate response.

Meanwhile, the government is set to give new tools to the Australian Competition and Consumer Commission (ACCC), the country’s competition watchdog, to protect consumers from crypto-related scams. It noted scam losses through crypto payments totaled $221 million in 2022.

The new tool will come in the form of a real-time data-sharing tool that the ACCC will use to identify and prevent crypto scams.

Consumer protection will also be bolstered when a framework is finalized to regulate the licensing and custody of digital assets to “ensure consumers are protected from avoidable business failures or from the misuse of their assets by service providers.”

This framework will not however begin until mid-2023, and will likely take considerable time before it is implemented into legislation.

Related: An overview of the cryptocurrency regulations in Australia

“The previous government dabbled in crypto policy but never took the time to future‑proof our regulatory frameworks to protect consumers and guide this new and emerging class of assets,” said the treasurers, adding:

We are acting swiftly and methodically to ensure that consumers are adequately protected and true innovation can flourish.”

The Australian Treasury released its token mapping consultation paper on Feb. 2, which attempts to determine which elements of the cryptocurrency ecosystem will be regulated and to what extent.

The multi-stage approach plan was fast-tracked by the catastrophic collapse of FTX in November which impacted over 30,000 Aussies and 132 Australian-based companies.

Australia bolsters crypto watchdogs in ‘multi-stage’ plan to fight scams

The new measures from the Australian government come as cryptocurrency scams skyrocketed 162% to $221 million in 2022.

The Australian government is bolstering its market regulator’s digital asset team as part of a “multi-stage approach” aimed at clamping down on crypto and ensuring proper risk disclosures from crypto firms.

A Feb. 2 joint statement by Australian Treasurer Jim Chalmers and Assistant Treasurer Stephen Jones explained that the new measures are aimed at protecting consumers dealing with cryptocurrency.

The treasurers said the multi-stage approach would involve three elements, including strengthening enforcement, bolstering consumer protection, and establishing a framework for its token mapping reform.

One of the main changes will be an increase in the size of the Australian Securities & Investments Commission (ASIC)’s digital assets team and “upping enforcement measures.”

Chalmers and Jones said that ASIC would focus on ensuring that the risks to consumers from crypto products and service providers are appropriately disclosed.

Cointelegraph reached out to ASIC to find out how many additional positions will be filled but did not receive an immediate response.

Meanwhile, the government is set to give new tools to the Australian Competition and Consumer Commission (ACCC), the country’s competition watchdog, to protect consumers from crypto-related scams. It noted scam losses involving crypto payments totaled $221 million in 2022.

The new tool will come in the form of a real-time data-sharing tool that the ACCC will use to identify and prevent crypto scams.

Consumer protection will also be bolstered when a framework is finalized to regulate the licensing and custody of digital assets to “ensure consumers are protected from avoidable business failures or from the misuse of their assets by service providers.”

However, this framework will not begin until mid-2023, and will likely take considerable time before being implemented into legislation.

Related: An overview of the cryptocurrency regulations in Australia

“The previous government dabbled in crypto policy but never took the time to future‑proof our regulatory frameworks to protect consumers and guide this new and emerging class of assets,” the treasurers said, adding:

We are acting swiftly and methodically to ensure that consumers are adequately protected and true innovation can flourish.”

The Australian Treasury released its token mapping consultation paper on Feb. 2, which attempts to determine which elements of the cryptocurrency ecosystem will be regulated and to what extent.

The multi-stage approach plan was fast-tracked after the catastrophic collapse of FTX in November, which impacted over 30,000 Aussies and 132 Australian-based companies.

FTX Australia’s license suspended as 30K Aussies left in the lurch

Three members of a Sydney-based investment and advisory firm are assigned to help Australians impacted by the suspension of the local entity of Sam Bankman-Fried’s former crypto empire.

Australia’s financial markets regulator has suspended FTX Australia’s financial license following the appointment of a voluntary administrator to help nearly 30,000 Australians and 132 Australian companies get their funds back from FTX.

The announcement was made by the Australian Securities and Investments Commission (ASIC) on Nov. 16 local time, which suspended the Australian Financial Services (AFS) license of FTX’s local entity until May 15, 2023.

Before its suspension, FTX Australia’s AFS license permitted it to create a market for derivatives and foreign exchange contracts to Australian-based retail and wholesale clients. Australian traders who signed up to trade digital assets were routed through FTX Australia.

FTX Australia has however, been permitted to provide limited financial services that strictly relate to the termination of existing derivative contracts with its clients until Dec. 19.

The suspension comes as John Mouawad, Scott Langdon, and Rahul Goyal of Sydney-based investment and advisory firm KordaMentha were appointed as voluntary administrators to provide restructuring services to FTX Australia and its subsidiary FTX Express on Nov. 11.

KordaMentha will attempt to recoup the funds of nearly 30,000 Australian investors and 132 Australian companies due to the catastrophic FTX fallout, according to a Nov. 14 report in the Australian Financial Review (AFR).

The report added that FTX Australia employees have been cooperating with KordaMentha’s administrators to resolve the matter. FTX founder and former CEO Sam Bankman-Fried are listed as one of the three directors of FTX Australia.

The suspension of FTX Australia’s customer-facing operations comes nearly eight months after it was established on Mar. 20, the firm also set up a Sydney-based office for its five employees.

Related: ‘Do not delay’ — ASIC warns Aussies to look for 10 signs of a crypto scam

Last wee130 firms tied to FTX including FTX US and its partner trading firm Alameda Research filed for Chapter 11 bankruptcy in the United States Code on Nov. 11, the same day that Bankman-Fried also resigned as FTX’s CEO.

ASIC noted that FTX Australia has the right to apply to the Administrative Appeals Tribunal to challenge ACIS’s decision.

Cointelegraph contacted ASIC and FTX for comment but did not receive a response by the time of publication.

FTX Australia’s license suspended as 30K Aussies left in the lurch

Three members of a Sydney-based investment and advisory firm are assigned to help Australians impacted by the suspension of the local entity of Sam Bankman-Fried’s former crypto empire.

Australia’s financial markets regulator has suspended FTX Australia’s financial license following the appointment of a voluntary administrator to help nearly 30,000 Australians and 132 Australian companies get their funds back from FTX.

The announcement was made by the Australian Securities and Investments Commission (ASIC) on Nov. 16 local time, which suspended the Australian Financial Services (AFS) license of FTX’s local entity until May 15, 2023.

Before its suspension, FTX Australia’s AFS license permitted it to create a market for derivatives and foreign exchange contracts to Australian-based retail and wholesale clients. Australian traders who signed up to trade digital assets were routed through FTX Australia.

FTX Australia has however, been permitted to provide limited financial services that strictly relate to the termination of existing derivative contracts with its clients until Dec. 19.

The suspension comes as John Mouawad, Scott Langdon and Rahul Goyal of Sydney-based investment and advisory firm KordaMentha were appointed as voluntary administrators to provide restructuring services to FTX Australia and its subsidiary FTX Express on Nov. 11.

KordaMentha will attempt to recoup the funds of nearly 30,000 Australian investors and 132 Australian companies due to the catastrophic FTX fallout, according to a Nov. 14 report in the Australian Financial Review (AFR).

The report added that FTX Australia employees have been cooperating with KordaMentha’s administrators to resolve the matter. FTX founder and former CEO Sam Bankman-Fried are listed as one of the three directors of FTX Australia.

The suspension of FTX Australia’s customer-facing operations comes nearly eight months after it was established on March 20, the firm also set up a Sydney-based office for its five employees.

Related: ‘Do not delay’ — ASIC warns Aussies to look for 10 signs of a crypto scam

Last wee130 firms tied to FTX including FTX US and its partner trading firm Alameda Research filed for Chapter 11 bankruptcy in the United States Code on Nov. 11, the same day that Bankman-Fried also resigned as FTX’s CEO.

ASIC noted that FTX Australia has the right to apply to the Administrative Appeals Tribunal to challenge ACIS’s decision.

Cointelegraph contacted ASIC and FTX for comment but did not receive a response by the time of publication.

Aussie asset manager to offer crypto ETF using unique license variation

The CEO of Monochrome Asset Management says their license approval represents a significant step forward for both the advice industry and retail investors.

Australian asset manager Monochrome Asset Management has landed the country’s first Australian financial services license (AFSL) for a spot crypto exchange-traded fund (ETF). 

Speaking to Cointelegraph, Jeff Yew, CEO of Monochrome Asset Management, said the AFSL approval is significant, as until this point, approved crypto ETFs in Australia only operate under general financial asset authorization and only indirectly hold crypto-assets.

Yew noted that Monochrome’s crypto ETFs, on the other hand, will directly hold the underlying crypto-assets and is specifically authorized by the Australian Securities & Investments Commission (ASIC) to do so.

The Monochrome executive said the approval represents a significant step forward for both the advice industry and retail investors:

“We see choice being a good thing for investors, particularly when dealing in the regulated space, as not all offerings are equal.”

”Investors investing in Monochrome’s ETFs will know that their funds are investing directly in Bitcoin (BTC) and Ethereu (ETH), and importantly within the regulatory rails established by ASIC specifically for crypto-assets,” he said.

At this stage, there is no firm date when the Monochrome Bitcoin ETF (IBTC) will be made available, but it’s expected in September 2022, once the PDS and TMD have been issued and subject to regulatory approvals.

When the ETFs are made available, Yew says “Monochrome will focus on BTC and ETH because they are the only two crypto-assets currently identified by ASIC as being suitable for retail ETF exposure.”

“Over time, and as the market matures, we will take an open-minded approach to make new products available.”

A first for a crypto ETF

Operating under an Australian Financial Services Licence (AFSL) with a direct crypto-asset authorization ensures that the fund and the issuer are subject to robust oversight from ASIC, said Yew. 

AFSL authorization opens new regulated investment opportunities for direct retail investors and through licensed financial advisers.

Approval of the Australian Financial Services Licence variation means that ASIC has considered and confirmed that the licensee has the relevant experience in crypto-assets to operate ETFs that directly hold Bitcoin and Ethereum.

This gives investors greater protections built around ASIC’s Report 705 such as suitable benchmarking against the spot price and Australian-compliant custody solutions.

Cointelegraph previously reported a warning from Australia’s financial regulator about using unregistered cryptocurrency businesses.

Road to approval

Monochrome Asset Management was launched in early 2021 by former Binance Australia CEO Jeff Yew to push for institutional adoption of crypto assets in Australia.

Related: Digital asset manager Monochrome valued at $15M following Series A

Their ETF plan has been in the works since February 2022.

Generally, the process for a financial services licence variation typically takes six to twelve months, which was the timeline in this case.