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Australia Proposes Crypto Exchange Regulations for Consultation
Crypto Regulation | Oct 16, 2023
Image: Unsplash/Ondrej Machart
Australian Treasury Publishes Digital Asset Exchange Regulatory Framework for Consultation by December 1, 2023
- The Australian government is keen on regulating the digital asset sector, focusing primarily on exchanges. The aim is to protect consumers, foster innovation, and provide clarity to the industry.
- The government's proposal recommends that crypto exchanges and digital asset platforms be subject to existing Australian financial services laws. Additionally, these platforms will need to obtain an Australian Financial Services Licence.
- Digital asset platforms will also have to adhere to specific obligations, including minimum standards for holding tokens, standards for custody software, and standards for token transactions.
See: Blockchain and the Digitalization of Real Estate | Australian Company with 11 Million Transactions
- Scope: Platforms holding over AUD 1,500 ($946) of an individual's assets or AUD 5 million ($3.15 million) in aggregate will be required to obtain a license from the Australian Securities and Investments Commission.
Timeline and Industry Reactions
- The proposal has garnered mixed reactions from the crypto community:
- While some, like Swyftx's general counsel, Adam Percy, appreciate the thoughtful approach
- Others, like Jonathon Miller, director of Kraken Australia, believe the proposal is trying to fit crypto into existing financial services regulation.
- The government expects to release draft legislation covering licensing and custody rules for crypto asset providers by 2024. Once enacted, exchanges will have 12 months to transition to the new regime.
Consultation
The government is actively seeking feedback on the proposed framework. Feedback on the proposal paper is open until 1 December 2023, with further consultations planned for the subsequent year on the draft legislation.
See: Australian Equity Crowdfunding Markets Raised $72 Million in 2022
Australia's approach to crypto regulation is consumer-centric, aiming to protect users while also ensuring that the industry can innovate and grow. The government's approach seeks to align with international standards and provide a clear roadmap for the future of digital assets in the country.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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