The Australian Securities and Investments Commission (ASIC) is asking for feedback on updated guidance related to digital assets. The United States has the dreaded Howey test for trying to decide whether a digital asset is an investment covered by the securities laws. Australia has something similar.
Regulators are sometimes loathe to provide detailed examples, because people try to thread the needle to skirt the law based on the specific example provided. For the sake of clarity, ASIC has provided 13 examples.
One way people try to sidestep laws is by taking a narrow view of tokens. ASIC says that “a ‘token’ is not separated from its associated bundle of rights, benefits, expectations and features for the purpose of being traded on a digital asset or crypto platform. Generally, we understand that when you trade a ‘token’ you are transferring the rights associated with that token.”
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