Towards an Australian crypto asset services licence
Licensing can serve critical functions in financial markets. If well designed and appropriately enforced, licensing regimes provide a level of protection to consumers against the risks inherent in relying on intermediaries to manage assets, execute transactions or provide advice. By imposing minimum standards on market participants, licensing can reduce the likelihood of insolvency, fraudulent conduct, conflicted dealings and poor quality advice. By imposing disclosure requirements, licensing can also improve transparency, enabling consumers to make more informed decisions and be aware of the risks and characteristics of financial products and services.
In digital asset markets, consumers face intermediary risks familiar to…
