Australia Advocates Functional Approach to Crypto Regulation
Australian regulators are pushing for a functional approach to cryptocurrency oversight, arguing that digital assets should be governed by existing financial laws when they perform similar roles to traditional instruments. The Australian Securities and Investments Commission (ASIC) emphasizes regulating based on economic substance rather than technological novelty.
Tokenized capital raises, stablecoin payments, and crypto derivatives mirror conventional securities, payment systems, and hedging contracts. This perspective suggests many crypto activities may already fall under current securities or payments frameworks without requiring new legislation. The approach aims to close regulatory gaps while providing clearer compliance expectations for industry participants.
