Regulatory Dynamics

Australian regulators have an open attitude towards Bitcoin ETFs

The Australian Securities and Investments Commission (ASIC) recently clarified its stance on Bitcoin ETFs. The agency stated that it has an open attitude towards Bitcoin ETFs as long as appropriate rules are in place to protect investors. The regulator emphasized that Bitcoin ETFs are products that could potentially be launched, but any products listed on Australian exchanges must comply with the appropriate rules of the specific market.

At the same time, the CEO of the Australian Securities Exchange also stated that, despite a cautious attitude towards cryptocurrency-related products at present, they are actively considering the possibilities of these products. This statement reflects the gradual opening of the Australian financial market towards crypto assets.

The State Council of China Issues New Regulations Mentioning Virtual Currency

The Chinese government website issued a new State Council order on February 10. The "Regulations on Preventing and Dealing with Illegal Fundraising" were passed at the 119th executive meeting of the State Council on December 21, 2020, and will be officially implemented on May 1, 2021.

Article 19 of the regulation specifically mentions virtual currencies. The regulation states that if funds are raised under the guise of issuing or transferring equity, debt, fundraising, selling insurance products, or engaging in various asset management, virtual currency, financial leasing and other businesses, and are suspected of illegal fundraising, the relevant departments should promptly organize investigations for identification. This indicates that the Chinese government is strengthening its supervision over activities related to virtual currencies.

Nigeria Suspends Cryptocurrency Regulatory Sandbox Program

On February 12, the Nigerian Securities and Exchange Commission (SEC) announced the suspension of its cryptocurrency regulatory program to align with the recent crypto ban implemented by the Central Bank of Nigeria. The SEC stated that the assessment of all individuals and products affected by the central bank's circular will be paused until these entities can operate their bank accounts normally within the Nigerian banking system.

It is worth noting that the Nigerian SEC recognized digital assets as early as September 2020 and planned to create a regulatory sandbox for cryptocurrencies to promote comprehensive regulation of the crypto market. However, after the central bank announced a ban on cryptocurrencies, the SEC had to adjust its position.

Nevertheless, the SEC stated that the regulatory sandbox proposal for non-crypto fintech companies focused on capital markets will proceed as planned. This decision reflects the challenges faced by Nigerian regulators in balancing innovation and risk control.

Earlier, on February 6, the Central Bank of Nigeria announced a complete ban on Bitcoin and other digital asset transactions, and required financial institutions to close bank accounts related to cryptocurrencies. This ban has attracted widespread attention and highlights the complex attitudes of emerging market countries when facing cryptocurrencies.