New licensing and custody obligations for Crypto Asset Secondary Service Providers (CASSPrs)

The Federal Government recently released a consultation paper (Consultation Paper), setting out the Government's proposed approach to licensing and regulating crypto asset secondary service providers (CASSPrs). This article unpacks the Consultation Paper, examines proposed concepts such as the CASSPr and definitions, and concludes with our early thoughts on the proposed legislative framework.

What is a CASSPr?

The proposed definition of CASSPrs would include service providers who give consumers and businesses access to crypto assets, including:

1. custody and storage services – where software and hardware are used to store and handle private keys;
2. exchange, brokerage and dealing services – facilitating access to crypto assets; and