Australia plans to require crypto exchanges to obtain a financial services license from the Australian Securities and Investments Commission. This move aims to protect consumers and support the growth of the digital assets market. Learn more about the proposed regulations and the industry’s response.
Australia is poised to enforce a significant change in its cryptocurrency landscape. The Australian government is working on draft legislation that will mandate all crypto exchanges to hold a financial services license issued by the Australian Securities and Investments Commission (ASIC). To acquire this permit, exchanges must have assets exceeding $3.2 million (A$5 million).
This move is primarily aimed at safeguarding consumers and ensuring a secure environment for crypto trading. The government believes it will not only enhance consumer protection but also foster the growth of the digital assets market. While the draft legislation is expected in 2024, crypto exchanges will have a one-year grace period to comply with the new regulations once it becomes law.
In a statement, Caroline Bowler, CEO of BTC Markets Pty, noted the importance of aligning with international regulatory standards, emphasizing the need for a robust regulatory framework. The proposed regulations cover custody, transaction standards, staking, and trading obligations for crypto exchanges.