Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
Australia requires crypto firms to obtain financial services licenses

Australia requires crypto firms to obtain financial services licenses

GrafaGrafa2024/09/24 04:05
By:Isaac Francis

Australia is set to introduce new regulations requiring cryptocurrency exchanges to hold financial services licenses, expanding beyond the existing requirements for digital currency exchanges.

According to Alan Kirkland, commissioner of the Australian Securities and Investments Commission (ASIC), this change is necessary as the Corporations Act already covers major crypto assets like Bitcoin (CRYPTO:BTC) and Ether (CRYPTO:ETH).

Speaking at the AFR Crypto and Digital Assets summit on September 23, Kirkland highlighted the need for clearer guidance regarding how crypto tokens and related products should be treated under Australian law.

The ASIC is expected to update the Corporations Act’s Information Sheet 225 in the coming months, with the goal of providing more regulatory clarity.

Kirkland stated, “A significant number of crypto-asset firms in the Australian market are likely to need a license under the current law.”

He emphasised that while ASIC supports responsible innovation, it remains concerned about potential risks to consumers and market misconduct.

“Licensing will mitigate risk while bolstering consumer confidence and market integrity — two elements that are crucial for encouraging innovation in the financial system.”

The upcoming regulatory changes come amidst criticism from Senator Andrew Bragg, who argued that Australia has fallen behind in crypto regulation.

Speaking at the same event, Bragg pointed out that Australia was once a leader in the crypto space but has since become a laggard, as the government has failed to implement proactive measures.

Bragg criticised the current administration for abandoning the 2022 regulatory framework and predicted that no meaningful crypto legislation would be passed during the current term of Parliament.

He said, “Labor has stifled innovation and denied Australians the opportunities to benefit from blockchain.”

Despite this, Australia’s government is expected to continue researching crypto regulation, with further guidance and draft legislation anticipated in the coming months.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!