Australia to implement licensing requirements for cryptocurrency firms crypto firms
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- 04 Oct 2024
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Australia is set to implement stricter licensing requirements for cryptocurrency firms, extending beyond current rules related to digital currency exchanges. This move comes as Australian regulators, particularly the Australian Securities and Investments Commission (ASIC), prepare new guidance that will require crypto exchanges to obtain financial services licenses.
ASIC Commissioner Alan Kirkland shared these plans at the AFR Crypto and Digital Assets Summit in Sydney, stating that most major crypto assets like Bitcoin and Ethereum fall under the Corporations Act. As a result, many cryptocurrency firms in Australia will need to comply with this law and obtain the necessary licenses.
The regulator aims to update the Corporations Act’s Information Sheet 225 to provide clarity on how different crypto tokens and products should be treated.
Kirkland emphasized that ASIC’s objective is to support responsible innovation in the crypto industry while addressing concerns about consumer protection and market misconduct.
He noted that the new licensing requirements would help reduce risks and enhance market integrity, encouraging innovation in Australia’s financial system.
This regulatory shift occurs against the backdrop of criticism from Senator Andrew Bragg, who has argued that Australia has fallen behind in crypto regulation over the past two and a half years.
Bragg pointed out that despite promises of safety and transparency from the Labor Party’s crypto policies, proactive regulation has lagged.
ASIC is expected to release updated draft guidance in the coming months, opening it up for feedback from the industry before implementing the new rules.
