Tougher regulations coming for Australian crypto platforms.
The Australian government has proposed new regulations for crypto exchanges operating in the country. Under the proposed rules, any exchange handling over A$5 million in crypto assets will be required to obtain a financial services license from the Australian Securities and Investments Commission (ASIC). This move aims to support the growth of digital assets while protecting consumers.
The regulations draw inspiration from frameworks used in other countries like the UK, Canada and Singapore. They will include standards for custody of assets and transaction monitoring to prevent fraud. Exchanges will need to submit financial records, monitor misconduct and meet solvency requirements.
The draft legislation is expected next year after a consultation period ending in December. Firms will then have 12 months to ensure compliance before the rules take effect.
Australian banks have previously restricted access to digital asset platforms over scam concerns. The regulations indicate growing government oversight of the crypto sector after volatile trading and high-profile collapses globally.
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