Australia has unveiled a new cryptocurrency regulation proposal that will enforce existing financial services laws on exchanges.
New Cryptocurrency Framework
On March 21, Australia’s Treasury Department announced new rules for crypto exchanges, custody services, and some brokerage firms. These companies will face compliance similar to traditional financial services, including safeguarding customer assets, obtaining an Australian Financial Services Licence, and meeting minimum capital requirements.
Exemptions and Additions
The new framework will not cover the entire digital asset ecosystem. Smaller platforms and those not meeting certain thresholds, along with blockchain software or non-financial digital asset firms, will be exempt. Payment stablecoins will be classified as stored-value facilities, but some stablecoins and wrapped tokens will be excluded from the regulations.
Industry Reaction and Future Expectations
Industry leaders have generally welcomed the proposals. BTC Markets CEO Caroline Bowler noted that while the reforms are sensible, more detail on capital adequacy and custody requirements is needed. Jonathon Miller from Kraken Australia called for clearer crypto legislation to address industry confusion and remove growth barriers.
Australia’s proposals for cryptocurrency market regulation could significantly impact the industry. While the legislation is still under discussion, it's evident that the country is moving towards a more structured approach concerning cryptocurrencies.
