Viewing Today’s Crypto-Asset Markets Through Regulatory Lenses – Are We There Yet?
Over the past 18-24 months, the regulatory approach to cryptocurrency has matured, with jurisdictions now coalescing around common approaches, guided by frameworks from bodies like FSB and IOSCO. In this panel, securities regulators across different jurisdictions gather to discuss the work they are doing.
1. Singapore
Moderator Abigail Ng of the Monetary Authority of Singapore (MAS) started off the session by providing a brief background of Singapore's approach to crypto assets thus far.
- Initial Coin Offerings (ICO) boom: Singapore's journey with cryptocurrency regulation began in 2017, during the ICO boom. MAS took a tech-neutral approach to regulation, focusing on the underlying nature of the offering rather than its digital format.
- Securities regulation: MAS stated that if a crypto offering resembles a security, even if in digital format, traditional securities rules will apply.
- Ongoing legislative work: Singapore has implemented key regulations, focusing on asset protection, segregation, and consumer safeguards, with full roll-out expected by mid-2025.
2. Thailand
Dr Nopnuanparn Pavasant of SEC Thailand touched on how the country has adapted its securities laws to include specific regulations for digital and crypto assets.
- Legal framework for digital assets: A specific law for digital assets was enacted in 2018, defining three types of digital assets: investment tokens, utility tokens, and cryptocurrencies.
- Investor protection & market integrity: Token offerings must comply with SEC regulations, including white paper publication. Thailand has seen success with real estate and movie project tokenizations, with more projects in the pipeline.
- Licensing & regulation of service providers: There are six types of licenses for digital asset service providers (e.g., exchanges, brokers, custodians), with 22 licensed providers are currently operating under the digital asset law, adhering to IOSCO recommendations on governance, investor protection, and client asset safeguards.
3. France
Charles Moussy from Autorité des Marchés Financiers discusses France's journey in regulating crypto assets, beginning with the PACTE Act in 2019 and transitioning towards the upcoming EU-wide MICA regulation. France's regulatory framework has evolved to support innovation while ensuring investor protection.
- Early Regulatory Framework (PACTE Act):
- France began its regulatory journey in 2015, focusing on understanding the technology and engaging stakeholders.
- The PACTE Act (2019) established a two-step regulatory framework: basic registration with the IMF for crypto service providers and an optional quality license for those meeting stricter requirements.
- Transition to MICA: MICA (EU-wide regulation) will bring more comprehensive requirements, including consumer protection, asset segregation, and operational rules. It will also introduce new market abuse regulations and governance requirements not previously covered in the French framework.
4. Australia
Dr. Rhys Bollen of the Australian Securities and Investments Commission delves into Australia's approach, which is aligned with the broader financial product and service frameworks.
- Broad Definition of financial products:
- In Australia, crypto assets are treated as financial products if they involve payments, investments, or risk management, irrespective of the technology (e.g., blockchain or distributed ledger) used.
- This broad approach was formalised during the ICO boom in 2017 and was updated with additional guidance as new crypto products, such as crypto ETFs, emerged.
- Upcoming digital asset facility regime:
- A government proposal for a "digital asset facility" regime is being developed to cover service providers (e.g., custody and trading platforms), adding another layer of regulation to ensure more holistic coverage of digital assets.
- This will expand the scope of regulatory oversight and address the evolving challenges of the digital asset space.
While key regulatory concepts are becoming clearer and more consistent, the regulatory perimeter—defining exactly which digital assets and services are subject to regulation—remains a complex area that requires further clarity. As regulatory maturity progresses, frameworks for digital assets are evolving toward greater clarity and cross-border collaboration, with a focus on investor protection, market integrity, and adapting to emerging technologies like tokenization.
Speakers:
- Charles Moussy, Head of Innovation and Digital Finance, Autorité des Marchés Financiers
- Dr. Nopnuanparn Pavasant, Assistant Secretary-General, SEC Thailand
- Dr. Rhys Bollen, Senior Executive Leader, Digital Assets, Australian Securities and Investments Commission
- Abigail Ng, Executive Director, Monetary Authority of Singapore