Australia now requires a financial services license for cryptocurrency platforms, strengthening regulation of the sector.
At the AFR Crypto and Digital Assets Summit on September 23, Alan Kirkland, Commissioner of the Australian Securities and Investments Commission (ASIC), announced that crypto-asset exchange platforms such as those for Bitcoin (BTC) or Ether will now require a financial services license.
According to The Australian Financial Review, this measure aims to better protect investors.
New Regulatory Guidelines to Be Published in the Coming Months
The Australian Securities and Investments Commission (ASIC) is set to update its Corporations Act Fact Sheet 225. This is to clarify the regulatory status of certain crypto-tokens. The update aims to provide further clarification. The latter concerns the legal obligations weighing on companies operating in the crypto-asset sector.
In addition, ASIC has reiterated that these companies are required to obtain a license. It also points out that current Australian legislation already applies to a large part of this market.
ASIC wishes to encourage responsible innovation in the cryptocurrency sector by putting in place a clear regulatory framework. Moreover, the organization aims to create an environment conducive to the development of new solutions while protecting investors.
Regulators Questioned
ASIC’s recent announcements of new regulations for cryptocurrency exchange platforms come amid criticism of the agency for not taking a sufficiently proactive approach.
Senator Bragg claimed that Australia “has gone from crypto leader to crypto laggard” over the past two and a half years. Bragg also mentions that the government had “completely abandoned” the 2022 regulatory framework for cryptoasset secondary service providers (CASSPs).
In early September 2024, the Australian Economic Legislation Committee recommended that the CryptoCurrency Regulation Bill be rejected. This one proposed by Senator Bragg.
The committee justified this decision by the need for further research into the subject. The bill included regulatory recommendations. This concerned stablecoins, the licensing of exchanges and custody requirements.
