Australia ASIC Fintech Head: Cryptocurrency Should Be Regulated Based on "Economic Substance Rather Than Technical Form"

Jinse Finance reported that the fintech director of Australia's securities regulatory agency stated that the functions achieved by blockchain and cryptocurrencies are no different from existing financial infrastructure, and therefore should not be treated as a separate asset class in legislation. In a paper submitted at the Melbourne Money and Finance Conference on Wednesday, Rhys Bollen, fintech director at the Australian Securities and Investments Commission (ASIC), said that cryptocurrencies should be regulated based on "economic substance rather than technological form." Bollen pointed out that tokenized securities should fall under securities law regulation, while stablecoins should be subject to payment services-related laws. He also mentioned that other areas related to cryptocurrencies could be governed by consumer protection laws. Bollen's regulatory approach contrasts with specialized regulatory frameworks for cryptocurrencies in other countries, such as the US CLARITY Act and the EU Markets in Crypto-Assets Regulation (MiCA).