During the Australian Securities and Investments Commission (ASIC) Annual Forum, ASIC released Information Sheet 219 Evaluating distributed ledger technology for both existing licensees and new market entrants. The information sheet informs businesses considering operating market infrastructure or providing financial or consumer credit services using DLT of how ASIC will assess whether a proposed DLT solution is compliant with licence conditions.
The assessment mechanism features six questions by which ASIC will evaluate potential use of DLT. Those questions are: how will the DLT be used, what DLT platform is being used, how the DLT is using data, how the DLT is run, how does the DLT work under the law and how does the DLT affect others. Appendix 1 to the information sheet provides particulars regarding each of the questions in the assessment mechanism, detailing the information of which ASIC would like to be informed. The assessment mechanism in the information sheet can be used to determine whether ASIC is likely to have concerns about the proposed implementation of a DLT solution by a fintech business.