Australia Crypto Firms May Need Financial Services Approval

Australia Crypto Firms to Follow Stricter ASIC Regulatory Rules

Australian regulators are gearing up to implement new laws that will require cryptocurrency exchanges to obtain financial services licenses. According to a report from The Australian Financial Review, these requirements will extend beyond just digital currency exchanges. The Australian Securities and Investments Commission (ASIC) is driving this change, with Commissioner Alan Kirkland emphasizing the need for regulation, stating that many widely traded crypto assets, like Bitcoin, fall under the Corporations Act. Speaking at the AFR Crypto and Digital Assets Summit on September 23, Kirkland highlighted the importance of protecting investors while ensuring that firms operating in the crypto space meet necessary legal standards.

ASIC Upcoming Regulations in November

ASIC plans to release updated regulatory guidelines in November 2024, which will provide more clarity on how specific crypto tokens and products should be regulated. This update to the Corporations Act’s Information Sheet 225 will help crypto firms understand their obligations under current laws. Kirkland noted that many crypto assets are considered financial products, meaning that firms dealing with them will likely need a license. This development is seen as a move to bring crypto exchanges under the same regulations that govern traditional financial services, helping reduce risks for investors.

Australian Government Push for Further Crypto Regulation

In addition to ASIC’s efforts, the Australian government is preparing to introduce legislation requiring crypto exchanges to hold financial services licenses. This new law would also establish guidelines for the custody of digital assets like Bitcoin and Ethereum, aiming to enhance investor safety. While the legislation was initially expected to be released this year, it remains uncertain if it will be finalized before the next federal election. However, the direction is clear, Australia is moving towards stricter regulations for the crypto industry, with many firms expected to fall under the new licensing rules in the near future.

Also Read: MoonPay Officially Registered for Crypto Services in Australia