Australia’s financial regulator is looking to impose stricter regulations on cryptocurrency firms that extend beyond just exchanges. According to a report by the Australian Financial Review, the Australian Securities and Investments Commission (ASIC) plans to require all crypto firms to be licensed under the country’s corporate law.
ASIC Commissioner Alan Kirkland has revealed that the agency plans to release an update to “Information Note 225” by November. This update will clarify how certain cryptocurrency tokens and products should be regulated under the Corporations Act. Kirkland stressed that most major crypto assets should fall under the Act’s jurisdiction and will further tighten oversight.
The move aligns with Australian authorities’ attempts to regulate the cryptocurrency industry as concerns grow over consumer protection and platform vulnerabilities. Last year, the Australian Treasury proposed that crypto exchanges holding assets above a certain threshold would need to obtain an Australian Financial Services Licence (AFSL). While draft legislation was initially expected to be released this year, it remains unclear whether it will be implemented before the 2024 federal election.
*This is not investment advice.