ASIC will Welcome Bitcoin ETF With Proper Rules in Place

The Australian Securities and Investments Commission (ASIC) has voiced out their stance regarding exchange-traded funds (ETFs) linked to Bitcoin, while addressing claims that it has a “secret policy” to stop such investment products tied to cryptocurrencies. The regulator is only concerned about investors’ protection and will welcome Bitcoin-linked ETFs, provided there are appropriate rules in place to protect the investors, according to the report by the Australian Financial Review on Friday.

ASIC Refutes Having Policy to Stop Bitcoin ETFs

The development is coming after the CEO of Cosmos Capital, James Manning, asserted that the regulator “have a policy — which they have not released — which says they do not want an exchange traded product, an MIS, listed on an exchange.” Note that, Cosmos Capital, a cryptocurrency mining and digital asset management company, tried to list a Bitcoin-linked ETF on the National Stock Exchange of Australia. However, the initiative was turned down by ASIC.

While addressing the claim today, ASIC commissioner Cathie Armour explained to the Senate select committee on financial technology that the effort from Cosmos Capital to list a Bitcoin ETF was rejected because the National Stock Exchange doesn’t have any proper rule to protect the investors. With appropriate rules in place, such products can be made available in Australia.

Bitcoin ETFs are Possible in Australia

“For any products to be quoted on exchange markets in Australia, the particular market needs to have in place rules that facilitate the quoting of products […] Not all markets have rules in place that do that. […] These products can be made available to Australians through a managed investment scheme regime and Australians can invest in these products in that way,” the commissioner precisely explained.

Bitcoin ETFs can be regulated under the Australian Securities Exchange’s AQUA Rules, according to Armour. This set of rules are specifically designed for ETFs, managed funds, and other related investment schemes. The National Stock Exchange of Australia doesn’t have such rules, Armour added.

The follows news a few months ago Australia’s Central Bank Tells ASX to Push on With Delayed DLT Trading Platform. Having confirmed it was replacing CHESS in December 2017, ASX originally planned to launch the new system in Q1 2020.