The Australian government is steering toward introducing more stringent regulations for cryptocurrency exchanges with a new proposal that may require such platforms to possess a financial services license. This step is anticipated to be instrumental in bolstering consumer protection while simultaneously nurturing the evolution of the digital assets sector.
This development, coming to light from a Bloomberg report, unveils that crypto exchanges with holdings exceeding $3.2 million will be mandated to obtain this license from the Australian Securities and Investments Commission (ASIC), the nation’s financial services regulatory body. The government is expected to present a draft legislation catering to this new regulatory landscape in 2024. Once enacted, crypto exchanges will be accorded a twelve-month window to align with these newly instated regulations.
The Treasury Department, in a document released on October 16, accentuated that the impending rules for crypto exchanges are sculpted on the existing legislative framework overseeing the financial services industry. The proposed regulations are poised to encapsulate aspects related to custody and transaction standards alongside exchanges’ responsibilities concerning staking and trading activities.
Caroline Bowler, the CEO at BTC Markets Pty, interpreted this regulatory maneuver as a positive evolution for the crypto landscape in Australia. Bowler underscored the imperative for the nation to stride in tandem with international counterparts by embedding a robust regulatory framework to govern the burgeoning crypto industry.
With the government’s pivot towards a more regulated environment for digital assets, Australian crypto exchanges are anticipated to transition into a landscape where regulatory compliance and consumer protection are paramount. This evolution is envisaged to amalgamate enhanced safety for investors while propelling the sustainable growth of the digital assets domain in the country.