Australia's ASIC: "Virtual assets should be regulated as economic entities, not independent assets."

Argument that tokenized securities are subject to securities laws and stablecoins to payments laws… Contrasting with the separate regulatory frameworks of the U.S. and EU

Australian securities regulators have stated that virtual assets should be treated within the existing financial regulatory framework rather than as an independent asset class.

Dr. Rhys Bollen, Head of Fintech at the Australian Securities and Investments Commission (ASIC), argued in a paper submitted to the Melbourne Money and Finance Conference on the 11th (local time) that "the functions realized by blockchain and cryptocurrencies are not essentially different from existing financial infrastructure" and that "they should be regulated based on economic substance rather than technical form."

Tokenized securities under the Securities Act, stablecoins under the Payments Act

Dr. Bohlen proposed regulating virtual assets under the existing legal framework according to their use.

The argument is that tokenized securities should fall under the category of securities laws, while stablecoins should be subject to laws related to payment services. It was added that other areas related to cryptocurrency can be handled under consumer protection laws.

This contrasts with the approach of the United States and the European Union (EU), which have defined cryptocurrency as a separate asset class and established dedicated regulatory frameworks.

The United States marked a turning point in virtual asset regulation through the Digital Asset Market Structure Act (CLARITY Act), which clarifies the regulatory distinction between digital products and securities. The EU is leading global cryptocurrency regulation by fully implementing the Markets in Crypto-Assets (MiCA), which applies to all 27 member states.

Backlash from Australian industry… "Tobacco analogy" also sparks controversy

Dr. Bollen's remarks drew a backlash from the Australian virtual asset industry.

According to Crypto News, a media outlet specializing in virtual assets, Dr. Bohlen previously sparked concerns in the industry by likening digital assets to "cigarettes bartered in prison."

ASIC is providing transitional support by recently confirming exemptions for stablecoin and wrapped token brokers. It is also focusing on providing regulatory clarity by monitoring the emergence of digital asset brokers and proprietary trading firms.

Industry officials expressed concern, stating, "If Australia does not establish a clear regulatory framework like the U.S. or the EU, it could fall behind in the global virtual asset market."

Choi Joo-hoon joohoon@blockstreet.co.kr