MIU - Issue 169 - July 2025
Issue 169 of the Market Integrity Update covers regulatory developments and issues affecting markets in July 2025.
ASIC clears way for industry participation in digital money research project
ASIC has provided regulatory relief to select financial institutions participating in Project Acacia, a digital money and tokenisation research project.
Led by the Reserve Bank of Australia (RBA) and the Digital Finance Cooperative Research Centre (DFCRC), Project Acacia is exploring how different forms of digital money and associated infrastructure could support the development of wholesale tokenised asset markets in Australia.
ASIC’s relief will support the responsible testing of tokenised asset transactions, in some cases using central bank digital currency’s (CBDCs), between participants and a limited number of financial institutions ranging from local fintechs to major banks.
This relief will support the 19 pilot use cases, which will involve real money and real asset transactions.
Testing of the selected use cases, including a further 5 proof-of-concept use cases involving simulated transactions, will occur over the next six months.
A report on the findings from the project expected to be published in the first quarter of 2026.
ASIC has previously provided individual relief of a similar nature to participants in earlier digital money projects led by the RBA.
The relief instrument is available on the Federal Register of Legislation.
The findings of this next stage of the project will support the RBA’s ongoing research into how innovation in the financial system can best support the Australian economy in the digital age.
Join ASIC’s Markets Liaison Meeting on 6 August
ASIC's Markets Group hold regular, hybrid liaison meetings with its stakeholders to provide insights and updates on our strategic priorities and key projects.
The next hybrid meeting will be held on Wednesday August 2025 from 2.00-3.00pm (AEST). You can attend in-person at Sydney ASIC Office and online via Teams Webinar.
If you’d like to join, and receive invitations to future meetings, please email the Markets Group at: markets.bmu@asic.gov.au.
New licensed clearing and settlement facility operating in Australia
We’ve granted Clearstream Banking S.A. (Clearstream) an Australian overseas clearing and settlement (CS) facility licence (CSFL) to operate a securities settlement facility in Australia.
This CS facility will be primarily used for the settlement and custody of Australian securities and other financial products described in the Clearstream CSFL.
Clearstream provides access to Australian securities for overseas investors and wholesale Australian participants through its connections into ASX Settlement and Austraclear.
On 27 June 2025, Clearstream became the third licensed overseas CS facility in Australia, joining LCH Ltd and Chicago Mercantile Exchange Inc., which both became licensed in April 2013 and September 2014 respectively.
ASIC and the Reserve Bank of Australia (RBA) are co-regulators of clearing and settlement facilities in Australia and are therefore responsible for the oversight of Clearstream.
The CSFL granted by ASIC allows for the supervision of Clearstream as a licensed CS facility and sets out conditions for its operation.
The Clearstream CSFL is available on our licensed clearing and settlement facilities webpage.
Read the RBA’s assessment of Clearstream.
Warning: Be wary of fraudulent brokerage account activity
ASIC is warning brokerage firms to be vigilant and monitor for fraudulent client account activity, following recent overseas criminal activity.
Earlier this year, cyber criminals in Japan used compromised brokerage accounts to manipulate financial markets and artificially inflate the price of small-cap stocks. This resulted in more than 100-billion-yen in losses (approximately $1 billion AUD) since February. Eight major Japanese brokerage firms, including Rakuten Securities and SBI Securities, have since reported cases of unauthorised trading.
These kinds of cyber attacks are not limited to Japan and East Asia. Cyber threat actors test systems around the world, exploiting weaknesses for financial gain.
ASIC recently observed credential stuffing cyberattacks against superannuation funds, where leaked user credentials were used to gain access to investor accounts. If successful, such attacks can allow threat actors to fraudulently establish share trading accounts, leading to losses and market manipulation.
Following a spike in reports of stolen shares due to identity theft in 2024 and an industry review, ASIC has also updated guidance for about how they can protect their clients and businesses from share sale fraud.
ASIC encourages brokerages and all market intermediaries to step up and protect their businesses and clients by strengthening cybersecurity prevention, detection and response practices.
Firms should act to:
- Monitor for the use of fake or compromised ID documents and engage with clients where concerns are identified
- Require validation of multiple forms of ID when creating accounts
- Use controls to identify anomalous activity, such as geo-location and geo-fencing
- Use appropriate measures to identify, block, or mitigate malicious bot activity on websites, applications and APIs
- Use multifactor authentication and encourage client use for logins, and
- Enforce the use of strong passphrases for client accounts.
Further information and guidance on how to protect your business and clients online, please visit the Australian Signals Directorate’s Australian Cyber Security Centre resources:
- Creating Strong Passphrases
- Multi-factor authentication, and
- The silent heist: cybercriminals use information stealer malware to compromise corporate networks.
Just launched: Website refresh for market infrastructure licensees
In line with ASIC’s broader website refresh, we have consolidated, migrated and updated our market infrastructure website content covering financial markets, clearing and settlement facilities, trade repositories and benchmark administrators.
This content is now centrally accessible from the ASIC website’s Markets and Market structure webpages, found under Regulatory resources.
Previously, some of this content was accessible from the For finance professionals section of the ASIC website.
These website improvements are designed to help people find the right information and perform key tasks more easily.
We have also updated references to Ministerial powers that have been transferred to ASIC under the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Act 2024.
We will continue to update webpages with key information and a focus on improving the user experience. You can share your thoughts via a survey can be found at the bottom of each page.
If you’re unable to find the information or webpage you need on the ASIC website, please use the search tool in the top right-hand corner of any webpage.
You can share your thoughts about the updated website by rating whether you find the information on the webpage helpful via a survey at the bottom of each page.
Inside ASIC podcast: Stopping the Scammers
In Inside ASIC we pull back the curtain on the work ASIC is doing on everything from public and private markets, to scams and financial hardship, insider trading, audit surveillance and regulating artificial intelligence (AI).
In Episode 6: Stopping the Scammers, we discuss the work ASIC is doing to protect Australian consumers from scams.
As AI prolific in modern society, scammers are using the tool to produce highly convincing scams that leave even the experts second-guessing.
The scammers are finding new ways to do it and ASIC is adapting and fighting to disrupt their activities and help scam victims.
Listen now on Spotify, Apple Podcasts or via RSS feed.
Alternatively, you can listen-in via the ASIC website.
Recent enforcement actions
In July, we announced the following enforcement outcomes:
ASIC warns investors of Bitget’s unlicensed crypto asset futures products
ASIC is warning Australian investors against investing in unlicensed crypto asset futures products offered by BTG Technology Holdings Limited and its related entities (Bitget).
Bitget does not hold an Australian Financial Services (AFS) licence, meaning it is not permitted to promote or encourage Australian investors to invest in its financial products.
Read the investor warning.
BBY former Executive Chairman charged over BBY’s dishonest use of $1.95 million client money
The former Executive Chairman of BBY Limited (BBY) has been charged with aiding, abetting, counselling or procuring BBY’s dishonest conduct in relation to a financial service.
ASIC alleges that between about 1 March 2015 and about 17 May 2015, Mr Rosewall aided, abetted, counselled or procured BBY’s use of $1.95 million of client money to facilitate payment of an unrelated corporate invoice.
This matter is being prosecuted by the Office of the Director of Public Prosecutions (Cth) (CDPP) following a referral from ASIC.
ASIC’s investigation into BBY is ongoing. Please visit ASIC’s BBY webpage for investigation updates on this matter.
Former Berndale director sentenced for dishonest conduct and misuse of company funds
A Melbourne man has been sentenced to 2 years and 11 months imprisonment, for dishonest conduct and misuse of company funds in relation to his role as a director of the Berndale group – Berndale Capital Securities Pty Ltd, Berndale Capital Securities Management Pty Ltd and Algoplus Pty Ltd.
On 15 May 2025, the man pleaded guilty to one count of providing false or misleading information to an auditor, one count of dishonest use of position as a director and one count of dishonest conduct in relation to a financial service.
For further information on ASIC’s investigation into Berndale and investigation updates, please visit the Berndale webpage on the ASIC website
ASIC secures travel restraint and asset freezing orders in connection with its investigation into First Guardian
Following an application made by ASIC, the Federal Court has made interim travel restraint orders against Falcon Capital Limited directors David Anderson and Simon Selimaj in connection with our investigation into First Guardian Master Fund.
Those orders prohibit Mr Anderson and Mr Selimaj from leaving or attempting to leave Australia until 27 February 2026.
The Federal Court also made interim orders freezing the assets of Mr Selimaj until 27 February 2026.
ASIC sought the orders to ensure Mr Anderson and Mr Selimaj remain in Australia to assist ASIC with its investigation and to preserve assets while ASIC’s investigation is continuing.
ASIC will update the First Guardian Master Fund webpage when important steps take place in relation to this matter and suggest you visit it regularly for investigation updates.