The post ASIC pushes function-based crypto regulation diverging from US and EU frameworks appeared on BitcoinEthereumNews.com.

Regulators in Australia say crypto should be subject to the same regulations as traditional financial products because they perform the same functions. An official at the Australian Securities and Investments Commission said regulators should focus on what a digital asset does, not the technology used to build it. ASIC advocates for rules that regulate crypto based on the financial job Regulators have noted major similarities between crypto and traditional financial systems, even though the technology for digital assets is new. For example, some crypto projects raise capital by issuing tokens to investors, just as companies do in traditional markets through shares and bonds. Similarly, people use stablecoins like other payment instruments to trade and transfer funds.  Some crypto companies even offer financial contracts that allow traders to hedge price movements or manage risk. Regulators will use this approach to classify different digital assets by case under securities laws or payment service regulation, or to decide whether they fall entirely outside financial regulation. Using a functional approach could reduce the risk of regulatory loopholes and create better expectations for businesses and investors. Policymakers in Australia believe the existing legal framework may already cover most activities involving digital assets, but lawmakers in other regions think otherwise. For example, the EU created a specific rulebook for digital assets through the Markets in Crypto-Assets Regulation (MiCA), which outlines laws for different crypto assets and their companies. In the U.S., regulators like the U.S. Securities and Exchange Commission rely on enforcement actions and court decisions to regulate crypto. Lawmakers have also proposed new laws, like the Digital Asset Market Clarity Act, to define and classify digital assets.  Policymakers in Australia want to create oversight without rebuilding the entire financial regulatory framework, so they are gradually integrating regulation for digital assets into the existing financial services…

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Filed under: News - @ March 11, 2026 11:26 am