Alan Kirkland, ASIC Commissioner, leads the path towards regulation of crypto and digital assets

According to ASIC Commissioner Alan Kirkland, a system with limited oversight, that is opaque, unpredictable, and unreliable, can lead to widescale investor losses, market manipulation, or abuse, ultimately leading to failure to thrive.

During Blockchain APAC’s Policy Week, Kirkland detailed ASIC’s strategies on crypto and digital assets, focusing on policy, regulation, and fostering innovation. He emphasized the importance of balancing market integrity and consumer protection with enabling new financial products and services.

Transparent and regulated crypto and DeFi systems are essential

Kirkland stressed that regulations and enforcement are crucial for building trust within the financial ecosystem, including the realms of crypto and decentralized finance. He mentioned ASIC’s Innovation Hub, which has supported over 900 entities since 2015, including those dealing with crypto assets and blockchain technology.

ASIC aims to find a balance among consumer protection, market integrity, and encouraging financial innovation. They also collaborate with the RBA on projects like Central Bank Digital Currency trials, tokenization, and regulatory reforms for digital asset platforms and payment services providers.

Establishing rules for market integrity and consumer protection

Kirkland highlighted the importance of ensuring regulatory outcomes and the consensus developing globally on regulating the crypto asset industry. He shared insights on ASIC’s enforcement strategy and the challenges they face in regulating the industry.

ASIC supports IOSCO’s objectives for addressing governance, conflicts of interest, abusive behaviors, and market integrity in crypto and digital asset markets, emphasizing the need for a consistent regulatory outcome. The commission is committed to using existing laws to address misconduct and ensuring industry participants comply with obligations for licensees.

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