Regulations Proposed for Australian Crypto Exchange Stir Debate
To regulate the digital asset sector the Australian Government is making plans, with a potential requirement for
cryptocurrency exchanges to obtain a financial services licence from the local financial regulator. The given regulatory framework aims to address consumer protection and promote innovation in the digital asset sector. The focus is on regulating exchanges and service providers under existing financial services laws rather than regulating individual cryptocurrencies or tokens.
Exchanges holding over $3.2 million or $946 per individual would need a licence from the Australian Securities and Investment Commission (ASIC). Some are appreciating the focus on user protection and innovation while others view it as shoehorning crypto into existing financial regulations, a mixed reaction is received from crypto exchanges in Australia. The consultation period allows for feedback until 1st December 2023.
