Regulatory Trends

Australia has an open attitude towards Bitcoin ETFs

The Australian Securities and Investments Commission (ASIC) recently clarified its position on Bitcoin ETFs. The agency stated that it has an open attitude towards Bitcoin ETFs as long as investors can be protected by appropriate rules. The regulator emphasized that Bitcoin ETFs are feasible, but any product listed on an Australian exchange must have corresponding rule protections.

At the same time, the leaders of the Australian Securities Exchange have indicated that, while they are taking a cautious approach to cryptocurrency-related products, they are actively considering the possibilities of these products. This suggests that the Australian financial market is gradually opening up to cryptocurrency assets, laying the groundwork for the potential launch of Bitcoin ETF products in the future.

China Introduces New Regulations to Prevent Illegal Fundraising

The Chinese government recently announced the "Regulations on the Prevention and Disposal of Illegal Fundraising," which will officially take effect on May 1, 2021. The regulations explicitly mention virtual currency-related businesses, categorizing them as potentially involved in illegal fundraising.

Article 19 stipulates that if funds are raised under the guise of issuing or transferring equity, debt, raising funds, selling insurance products, or engaging in asset management, virtual currencies, financing leasing, and other businesses, and are suspected of illegal fundraising, the relevant departments should promptly organize investigations to determine the nature of the activities. This provision indicates that Chinese regulatory authorities are strengthening their oversight of potential risks in the virtual currency sector.

Nigeria Suspends Crypto Regulatory Sandbox Plan

The Nigerian Securities and Exchange Commission (SEC) has announced the suspension of its cryptocurrency regulation program to align with the recent cryptocurrency ban implemented by the country's central bank. The SEC stated that the assessment of all individuals and products affected by the central bank's circular will be paused until they are able to operate their bank accounts normally within the Nigerian banking system.

It is worth noting that the SEC recognized digital assets in September 2020 and planned to create a regulatory sandbox for cryptocurrencies to advance comprehensive regulation. However, the central bank's ban on cryptocurrencies conflicted with the SEC's previous stance, resulting in adjustments to regulatory policies.

Nevertheless, the SEC emphasized that the regulatory sandbox proposal for non-crypto financial technology companies will proceed as planned, demonstrating the regulator's efforts to strike a balance between financial innovation and risk control. This series of initiatives reflects Nigeria's cautious approach to cryptocurrency regulation while also highlighting the challenges that emerging financial technologies pose to traditional regulatory frameworks.