In other words, users do not need an Australian market licence to operate a digital currency trading platform, or an Australian financial services licence in order to trade in Bitcoin-like coins.
ASIC said in its submission that contracts for the sale and purchase of digital currencies are typically settled immediately and, as a result, are unlikely to be financial products or derivatives. ASIC said it has determined that some facilities developed to enable the use of a digital currency to make payments may be a financial product regulated by the commission.
However, it also said that treating Bitcoin as currency could mean that some contracts for the purchase and sale of digital currencies could be classed as financial products, if the contracts are not settled immediately, even though these transactions are typically settled immediately.
ASIC also claimed that should Bitcoin and other cryptocurrencies be eventually treated as currency, it may result in exchange contracts being subject to consumer protection obligations in the ASIC Act.
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