The Australian Government plans to require crypto exchanges to hold a license from financial services in order to protect the investors.
L’Australia is preparing to introduce new rules for cryptocurrency exchange platforms. This Monday, the Australian Treasury in fact published a consultation indicating that the government intended to introduce a regulatory framework to support innovation while protecting investors.
The proposed regulatory framework would apply to digital asset platforms that present risks similar to those of entities operating in the traditional financial system. It proposes to leverage Australia’s financial services framework to regulate platforms to ensure consistent oversight and safeguards for consumers,” Treasury wrote in a statement.
Inspired by other jurisdictions such as Singapore, the new regulations would apply to crypto exchanges holding more than A$5 million for their customers. A bill is expected in 2024.
” [C’est] a positive progression for the crypto industry. It’s imperative that the country keeps pace with its international peers, with a strong regulatory framework,” commented Caroline Bowler, director of local exchange BTC Markets.
Recent disasters in the ecosystem, including FTX and Terra, have prompted many jurisdictions around the world to rethink their oversight of the cryptocurrency market.
Last year, the Australian Securities and Investments Commission (ASIC), the country’s main financial regulator, took aim at several major players offering crypto-trading including Binance and eToro. The Australian government also announced its intention to “map” digital assets such as Bitcoin and Ethereum.
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