Australian Regulator Issues Guidance On Use Of Distributed Ledger Technology: The View From Canada

In an effort to help regulated entities and interested parties evaluate whether the use of distributed ledger technology (DLT) would enable them to meet their regulatory obligations and to fast-track its discussions with stakeholders, the Australian Securities and Investments Commission (ASIC) has released an information sheet, "Evaluating Distributed Ledger Technology" (INFO 219), offering guidance for entities licensed by ASIC and start-ups that are "considering operating market infrastructure, or providing financial or consumer credit services" using DLT or blockchain.

Noting the "intense interest in DLT" ASIC is seeing from a wide range of financial services market players in recent years, DLT's deployment in a broadening array of use cases, and the anticipated "exponential" growth in the applications of DLT over time, the information sheet sets out the regulatory considerations regarding the use of DLT that ASIC has identified to date.