The Australian federal government is set to introduce new regulations requiring crypto exchanges to obtain a financial services license, the Australian Financial Review reported on Oct. 15.
Assistant Treasurer Stephen Jones is scheduled to unveil these long-anticipated rules during the Australian Financial Review Crypto Summit.
According to the report, the government will focus on the exchanges — subjecting them to existing financial services laws — rather than regulating individual tokens or cryptocurrencies.
The new rules
Crypto exchanges holding more than $5 million in aggregate or exceeding $1,500 for any individual user will be mandated to obtain an Australian Financial Services License (AFSL) issued by the Australian Securities and Investments Commission (ASIC).
The regulations will compel exchanges to adhere to stringent standards, including providing services transparently and fairly, managing conflicts of interest, disclosing information, submitting financial reports, and meeting solvency and cash reserve requirements.
Additionally, asset custody rules will be enforced to enhance consumer protection within the sector.
According to Treasury data, one in four Australians collectively hold billions of dollars worth of cryptocurrencies through various exchanges operating in the country — making it imperative to bolster consumer protections.
The move follows a series of international hacks and cases of
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Author: Assad Jafri
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