ASIC Guidance and Parliament's Digital Asset Framework Impact Coinbase Licensing
What happened
ASIC updated its INFO 225 guidance, stating that many digital asset products are financial products under existing law, requiring an AFS license. This interpretation was reinforced by the High Court’s Block Earner ruling. Separately, Parliament passed the Digital Asset Framework, which will bring digital asset and tokenized custody platforms under the financial services licensing regime starting April 9, 2027.
From cointelegraph.com
Why it matters
ASIC warned that firms currently licensed under INFO 225 may need additional DAP and TCP authorizations once the new framework commences. The new law will bring digital asset platforms and tokenized custody platforms under Australia’s financial services licensing regime.
A committee is meeting with Coinbase representatives regarding VDA regulation, while the RBI monitors the operations of crypto exchanges.
From cointelegraph.com
Who's involved
- ASICRegulator issuing guidance on how existing financial services laws apply to digital assets.
- CoinbaseCryptocurrency exchange platform subject to regulatory guidance and licensing requirements.
- parliamentLegislative body that passed the Digital Asset Framework.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- CoinbaseSpeculative
Coinbase might face increased operational costs and delays in business expansion due to the requirement to obtain specific licenses under the new framework.
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.- APRA may adjust oversight criteria following digital asset frameworkAPRA may need to adjust oversight criteria due to new digital asset lawsLikely
- Mitrade may face higher compliance costs from new digital asset rulesMitrade may face increased compliance costs due to expanded digital asset regulationPossible
- Coinbase's regulatory challenges may affect its listing on NasdaqRegulatory uncertainty in Australia may impact Coinbase's listing stability on NasdaqPossible
How it developed
Newest first. Tap a step to see who reported it.- Coinbase seeks ASIC approval to conduct stock trading.Sub-event
- Rigid primary law constrained the actions of the regulator, ASIC.Sub-event
- Australia implemented digital asset bill compliance, with Kraken involved in the process.Sub-event
Parliament passed the Digital Asset Framework and ASIC issued guidance affecting Coinbase.1 source
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The entities involved
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ASIC
organization
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Coinbase
American company that operates a cryptocurrency exchange platform
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parliament
legislative body of government
Related events
- ASIC, Australia's integrated corporate regulator, regulates corporate disclosures in Australia.
- The Financial Markets Authority cancelled a Sydney auditor's license in cooperation with ASIC.
- Chris Andrews supports ASIC efforts to close regulatory gaps.
- Administrators reported findings to ASIC regarding a company that operated on the Sunshine Coast in Queensland.