Australia has announced a proposal aimed at regulating digital asset service platforms, signaling that it will take measures to increase clarity and protect consumers.
Australia Proposes New Regulations for Crypto Exchanges Using Existing Legal Framework
In a consultation paper, the Australian Treasury highlighted the growing imperative to regulate these platforms, citing examples of vulnerabilities and failures.
The government's strategy involves leveraging established Australian financial services laws.
Under this scheme, platforms with assets of AU$1,500 (about $948) for an individual or AU$5 million (about $3.2 million) in total or more are required to obtain an Australian Financial Services Licence.
Regulators are also considering the implementation of certain obligations, including the establishment of standards for custody software and guidelines for token transactions.
The proposed framework will impose more obligations for various activities such as trading, staking, tokenization and fundraising.
Angela Ang, senior policy advisor at blockchain intelligence firm TRM Labs and a former regulator at the Monetary Authority of Singapore, praised the Australian government's proposal in a social media post.
He described it as “a thoughtful way of applying existing legal and regulatory structures to crypto assets that take into account their unique characteristics, as well as complying with international standards.”
Some banks in Australia have taken a cautious stance towards potential crypto-related scams.
In July, National Australia Bank announced it was restricting certain payments to “high-risk” cryptocurrency exchanges to protect its customers.
*This is not investment advice.
