The regulatory authorities in Australia in their recent decision showed relaxation regarding the cryptocurrency regulation. The regulatory authorities in Australia said that there is no need for ETF providers to hold domestic crypto custody.

The Australian Security and Investments Commission also passed the new guidelines for the crypto industry. Moreover, the Securities and Investments Commission (ASIC) also recorded its response to public consultation on cryptocurrency exchange-traded products (ETPs).

This detailed verdict appeared on media and websites on Oct. 29. Australian regulators published a series of detailed regulatory instructions for those funds willing to offer crypto ETPs. These regulations also addressed exchange-traded funds (ETFs) and structured products, regarding cryptocurrency.

However, the Australian think tankers started working on these detailed instructions back in the month of June. The regulatory personnel consulted experienced industry professionals before coming up with these provisions.

The official guidance of the Security and Investments Commission of Australia shows they have green signaled the approval of ETPs based on major cryptocurrencies like Bitcoin (BTC) and Ether (ETH). As of this writing, ASIC has only allowed the ETPs of top two cryptocurrencies. However, it has been said that further digital tokens would soon be shortlisted for the launch of their own ETPs.

It was not a biased decision from the regulators. Australian Security and Investments Commission allowed Bitcoin and Ether to launch their own ETPs because back then these two digital tokens were the only cryptocurrencies with the capacity to fulfill the conditions required for the launch of ETPs funds.

Apart from that, the experts have said that in near future there would be multiple digital tokens with the ability to fulfill the requirements needed to qualify for the approval of the ETPs fund. The fact of the matter is that for any cryptocurrency it is extremely important to earn institutional support in order to launch its own ETPs funds. Apart from that mature spot market, a regulated futures market, reputable and experienced service providers, and transparent pricing mechanisms also play a key role for the progression of any cryptocurrency.

Since Bitcoin and Ether are two of the world’s most valuable and trusted digital tokens. There are multiple institutions supporting these two coins and also piling up their Bitcoin and Ether stocks. As a result of the institutional backing, regulators are not much concerned about these two currencies. It is important for the regulators to examine whether the cryptocurrency has the capacity to fulfill its obligations before the approval of ETF.

There are multiple local and international players who are actively communicating with the regulatory authorities over the approval of ETS funds. It seems that the regulatory authorities of Australia have taken the huge step in the favor of crypto market.