In this image illustration taken on June 14, 2021, a depiction of the virtual cryptocurrency Ethereum is shown among representations of other cryptocurrencies. Illustration courtesy of REUTERS/Edgar Su 30 JUNE (Reuters) – The Australian Securities and Investments Commission said on Wednesday that it would seek feedback from market participants on ideas to identify eligible crypto assets and establish good market practices for financial instruments that deal in digital currency-backed assets. The action comes as governments and regulators around the world attempt to regulate the digital asset business in the wake of growing investor interest in cryptocurrencies, which are volatile and risky for both users and financial institutions. The most popular cryptocurrency, Bitcoin, has had its price fluctuate significantly this year, trading around $35,500 on Wednesday after reaching an all-time high of well under $65,000 in mid-April. find out more If exchange-traded products (ETPs) and other instruments exposed to crypto-backed assets are not established and regulated appropriately, the Australian Securities and Investments Commission (ASIC) sees a “serious risk of harm to consumers and markets.” To safeguard retail investors and promote fair market practices, the regulator proposes establishing good practices in the price, ownership, risk management, and disclosure of these instruments. “When establishing, managing, and authorizing such products, market operators and product issuers must be cognizant of their existing regulatory obligations,” ASIC Commissioner Cathie Armour stated. According to the suggestions, these assets are considered financial instruments under Australian corporate law, and hence are regulated by ASIC. Following the consultation on the suggestions, the agency will provide a feedback report and publish information on best practices, according to the statement. Sameer Manekar contributed reporting from Bengaluru, and Subhranshu Sahu edited the piece. The Thomson Reuters Trust Principles are our standards. Continue reading