Australian Government Proposes Licensing Requirement for Crypto Exchanges
The Australian government is considering a proposal that would require cryptocurrency exchanges to obtain a license from the country’s financial services regulator in order to operate. The proposal states that digital asset intermediaries must obtain an Australian financial services license granted by the Australian Securities and Investments Commission (ASIC) to “issue and deal in digital asset facilities.” However, exemptions will be granted for intermediaries holding assets valued below $5 million AUD ($3.18 million).
Inclusion of Crypto Brokers and Dealers in Licensing Regime
The proposal also includes crypto brokers and other dealers in the licensing regime. It specifies that individuals or businesses that deal in digital asset facilities provided by licensed platform providers, as long as the dealing does not involve financial products, do not need an Australian financial services license.
Fighting Market Misconduct on Crypto Exchanges
The proposal places responsibility on crypto exchanges to combat market misconduct such as market manipulation, false trading, and fictitious transactions. Exchanges will be required to have listing criteria for products available on their platforms and provide sufficient disclosures on tokens before transactions occur.
Hot Take: Australia Takes Steps to Regulate Crypto Exchanges
The Australian government’s proposal to require licensing for crypto exchanges demonstrates its efforts to regulate the cryptocurrency industry within the country. By introducing licensing requirements and placing responsibilities on exchanges, the government aims to protect investors and ensure transparency in digital asset transactions. This move aligns with global trends towards increased regulation of cryptocurrencies. If implemented, this licensing regime could provide a framework for other countries looking to regulate their own crypto markets.
By
By
By
