Hassan Maishera
TL;DR
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Australia could roll out a new licensing regime for cryptocurrency exchanges.
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Cryptocurrency exchanges in the country could receive their licenses by 2025.
Australia Could Introduce New Licensing Regime For Crypto Exchanges
Australia's Treasury announced earlier today that it would release a draft legislation which covers the licensing and custody rules of cryptocurrency exchanges and other service providers by 2024.
According to the Treasury, once the legislation becomes law, exchanges will have 12 months to transition to the new regime. Cryptocurrency exchanges could receive their licenses by 2025 if the legislation becomes law.
The Australian government continues to take bold steps towards framing cryptocurrency regulation in the country. The publication of the proposal came following a speech by Australia's Assistant Treasurer and Minister for Financial Services, Stephen Jones, at The Australian Financial Review Crypto Summit (AFRCM).
While commenting on this latest development, Michael Bacina, digital asset lawyer at Piper Alderman and Chair of Blockchain Australia, said;
“Australia has been waiting for certainty over digital asset regulation so it can seek to catch up with the rest of the world. The approach is consumer-protection-centric, with a broad net set to capture many business models not currently regulated. NFT marketplaces holding customer assets could also require licensing."
Per the proposal, crypto exchanges that hold more than AUD 1,500 ($946) of any one client or more than AUS 5 million ($3.15 million) in total assets would need to obtain an Australian Financial Services licence granted by the Australian Securities and Investments Commission.
Adam Percy, General Counsel of Swyftx, a local crypto exchange, stated that Swyftx is pushing for a level playing field for national and overseas crypto platforms. He also praised the government’s consultation process and added that there is room for innovation.
