Rhys Bollen, head of fintech at Australia's Securities and Investment Commission (ASIC), stated that blockchain and crypto technologies perform functions similar to existing financial infrastructure and should not be legislated as separate asset classes. Speaking at the Melbourne Money and Finance Conference, Bollen emphasized regulating crypto based on its economic substance rather than its technological form. He proposed that tokenized securities should fall under securities laws, and stablecoins should be subject to payment services legislation. Other crypto assets may be covered by consumer protection laws.
Bollen's approach diverges from regulatory frameworks in the US and Europe. He noted that core financial functions like capital allocation, payments, and risk management have evolved with technology, and distributed ledger technologies should not be treated uniquely. He asserted that regulatory systems have historically adapted to technological changes without compromising foundational principles such as consumer protection, market integrity, and systemic stability.
ASIC Information Sheet 225 guides the Australian crypto market, indicating that current definitions of "financial product" and "financial service" under the Corporations Act can apply to digital assets. The sheet focuses on regulating intermediaries, as much consumer harm in the digital asset sector stems from crypto platforms offering custody, trading, lending, or yield services. Bollen added that legal analysis should prioritize practical control and profit over claims of decentralization when assessing diversification issues in decentralized products.