To safeguard consumers, maintain market integrity, and promote financial innovation, the “regulatory trilemma” surrounding financial innovations must be resolved, according to ASIC Commissioner Alan Kirkland. As it approaches the development and implementation of several regulatory changes for the cryptocurrency industry, the Australian Securities and Investments Commission will concentrate on the intended regulatory results.
On March 20, at Blockchain APAC’s Policy Week, Commissioner Alan Kirkland of ASIC presented the organization’s strategy for encouraging the expansion of responsible financial innovation at “The Brief – Open Forum.”
Over 900 Firms Received Informal Regulatory Help From ASIC
When it comes to financial innovations, Kirkland emphasized the necessity to resolve the “regulatory trilemma,” which includes preserving consumer protection, upholding market integrity, and promoting financial innovation.
Through enhanced monitoring and the balance of the trilemma variables, they seek to promote confidence in cryptocurrency and decentralized financial systems. Since 2016, approximately 900 firms have received informal regulatory help from ASIC, according to the commissioner. “In short, our desired outcome is a clear set of rules that maintain market integrity and mitigate the risks to consumers and investors-backed by mechanisms that promote compliance with these rules and enable us to enforce them effectively,” Kirkland stated about the impending revisions. Numerous suggestions for tokenizing financial goods and other “real world” assets were also submitted. Kirkland said, “The current regulatory regime will regulate some types of tokenization, while the government’s proposed digital asset platform will regulate others.”
