Australia to require cryptocurrency firms to hold financial services licenses
Licensing criteria for cryptocurrency exchanges in Australia will go beyond those for digital currency exchanges. Australian officials are apparently draughting new guidelines for bitcoin exchanges to get financial services licenses.
The Australian Financial Review (AFR) claimed that licensing criteria for cryptocurrency exchanges in Australia will be expanded beyond those for digital currency exchanges.
According to Australian Securities and Investments Commission (ASIC) commissioner Alan Kirkland, the additional restrictions are necessary since the regulator believes the Corporations Act covers the majority of important crypto assets, including Bitcoin BTC $63,680 and Ether $2,657.
On September 23, the commissioner announced the authority’s proposals at the AFR Crypto and Digital Assets Summit in Sydney.
New regulatory guidance to be released in the coming months
Kirkland allegedly stated before to his presence at the event that ASIC is going to update the Corporations Act’s Information Sheet 225 to provide additional clarification on how specific crypto tokens and products should be viewed from a regulatory viewpoint.
“ASIC’s message is that a significant number of crypto-asset firms in the Australian market are likely to need a licence under current law,” Commissioner Kirkland stated in a statement to Cointelegraph.
He mentioned that ASIC promotes responsible innovation in the cryptocurrency business. Still, it is concerned about the possibility of consumer harm and market malfeasance, which it hopes to address through the regulatory regime.
“ASIC expects to issue updated draft guidance in the coming months, which we will open up to feedback from the industry,” the Commissioner said. She further stated: “ASIC believes that licensing and its subsequent protections will mitigate risk while bolstering consumer confidence and market integrity — two elements that are crucial in encouraging innovation in the financial system.”
Australia “has gone from crypto leader to crypto laggard,” argues Senator Andrew Bragg
The announcement of ASIC’s impending guidelines came as Senator Andrew Bragg slammed Australian regulators for failing to take a proactive approach to regulating the cryptocurrency sector.
Senator took to X on September 23 to discuss his speech at the AFR event, stating that Australia “has gone from crypto leader to crypto laggard” in the last two and a half years.
In his address, the Senator highlighted that Australia was expected to establish crypto regulation a few years ago when Finance Minister Stephen Jones stated that the Labour Party’s approach to crypto would prioritise “safety and transparency.”
Senator Bragg stated that the administration “completely abandoned” the 2022 regulatory framework for crypto asset secondary service providers (CASSP) following the election. Instead, Labour re-released the consultation paper after 18 months and has not made a public statement about it, according to the MP.He projected that Australia’s current Parliament term will not see any progress in crypto regulation. Labour has squandered three years by focussing primarily on the demands of its close allies […] Labour has hampered innovation and denied Australians the opportunity to benefit from blockchain by putting the country in the crypto slow lane.”
As previously reported by Cointelegraph, Australia’s Committee on Economics Legislation advised against passing Senator Bragg’s crypto regulatory bill in early September 2024, citing the necessity for the government to continue researching the matter. Introduced in March 2023, the draft bill included regulatory suggestions for stablecoins, exchange licensing, and custody requirements.
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