The proposals specifically aim to tackle “consumer harms” associated with digital assets, which the government says have been perpetuated by ineffective management practices, inadequate governance structures, poor operational resilience, widespread conflicts of interest and instances of fraudulent activities.
To mitigate these risks, the proposed regime encompasses four core amendments to current legislative procedures.
Firstly, digital asset platforms are to be held to the same standard as other financial services providers under the country’s existing framework, through what the proposal describes as a “similar activity, similar risk, same regulatory outcome” approach.
