Australiaโs financial regulator, led by Assistant Treasurer Daniel Mulino, proposed expanding oversight of cryptocurrency exchanges, introducing them to the Australian Financial Services Licence framework within the Corporations Act.
This legislative move aims to enhance compliance and consumer protection, aligning Australia with global standards, potentially reshaping the market dynamics for digital asset platforms.
Australiaโs financial regulator has proposed draft legislation to regulate cryptocurrency exchanges under the Australian Financial Services Licence (AFSL) framework. This move aims to strengthen compliance and consumer protection within the digital asset sector.
Assistant Treasurer Daniel Mulino announced the proposal, detailing plans to bring exchanges and custody platforms into the AFSL framework. This aligns Australiaโs regulatory approach with global standards, targeting regulatory gaps and enhancing legal clarity.
AFSL Inclusion for Australian Crypto Exchanges Announced
โThe new framework will close regulatory gaps and provide legal clarity for digital asset participants, aligning Australia with major global peers.โ โ Daniel Mulino, Assistant Treasurer, Australian Government
A$6.5 Million Threshold Set for Exchange Exemptions
Exempting platforms with transactions under A$6.5 million, the legislation anticipates higher compliance costs for larger exchanges. The initiative may limit smaller projectsโ burdens while ensuring robust compliance measures are maintained.
Insights suggest potential financial and regulatory shifts, with increased operational costs for some digital asset platforms. Past enforcement by AUSTRAC has already led to fewer registered exchanges, hinting at a tightening environment. These factors play into larger industry frameworks.
Regulatory Push Following 2022 FTX Collapse
The governmentโs move follows the FTX collapse in 2022, seen as a catalyst for change. This incident underlines the need for clearer, enforceable regulations within the crypto exchange landscape.
Experts like Steve Vallas emphasize the importance of regulatory clarity. He asserts that cohesive efforts between industry leaders and regulators will shape Australiaโs global competitiveness, leveraging past lessons to improve future frameworks.
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