Crypto News – Australia’s Treasury stated on Monday that the country anticipates publishing a draft law by 2024 that would address licensing and custody requirements for companies that sell crypto assets.
Australian Crypto Exchanges Undergo New Regulations
Once the law is passed and becomes enforceable, exchanges will have a year to adjust. A license under the recently proposed framework may not be granted to an Australian digital asset platform until 2025, according to the timeframe. However, the moves represent some of Australia’s government’s most important steps toward creating cryptocurrency legislation. The plan was initially announced in February 2023, with a mid-2023 delivery date anticipated.
The proposal’s release was timed to coincide with a lecture delivered at the Australian Financial Review Crypto Summit (AFRCM) by Australia’s Assistant Treasurer and Minister for Financial Services, Stephen Jones. AFR was the first to report on the proposal’s specifics.
Australia has been waiting for certainty over digital asset regulation so it can seek to catch up with the rest of the world. The approach is consumer-protection-centric, with a broad net set to capture many business models not currently regulated. NFT marketplaces holding customer assets could also require licensing.
Michael Bacina, digital asset lawyer at Piper Alderman and Chair of Blockchain Australia
About the New Legal Regulations
An Australian Financial Services license, issued by the Australian Securities and Investments Commission, is reportedly required for any cryptocurrency exchanges that hold more than AUD 1,500 ($946) in assets for any one client or more than AUD 5 million ($3.15 million) in total assets. By December 1, 2023, the paper is looking for written entries that address one of 32 themes.
Swyftx would like to see a level playing field for national and overseas crypto platforms. The Government consultation is thoughtful … with appropriate protections and … room for innovation.
Adam Percy, General Counsel of Swyftx, a local crypto exchange
On October 16, the Australian Treasury made a consultation paper titled “Regulating digital asset platforms” available. The paper explains the suggested regulatory framework for cryptocurrency exchanges and service providers, with the goal of addressing consumer harms and systemic risks related to the digital asset industry while promoting its expansion and success.
According to the study, cryptocurrency exchanges should be managed in accordance with the current financial services framework rather than having their own set of rules. This structure would require bitcoin exchanges to follow the same regulations as other financial service companies and apply for and receive a financial services license from the Australian Securities and Investment Commission (ASIC).
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