Aussie crypto exchanges look to new licensing regime with cautious optimism

Australian crypto exchanges have praised plans from the Australian Treasury to control cryptocurrency exchanges below pre-existing monetary providers licensing measures.

In an Oct. 16 session paper, the Treasury outlined a brand new suite of proposed laws, that prompt regulating cryptocurrency exchanges below current monetary providers guidelines in addition to introducing a wealth of recent tips for all Australian corporations dealing in digital belongings.

Talking on the Australian Monetary Opinions Crypto Summit occasion on Oct. 16, Australian Treasury Stephen Jones stated the brand new regime was targeted on three main areas: offering a framework for business development and innovation, permitting regulatory certainty to crypto service suppliers, and guaranteeing that on a regular basis shoppers and their belongings stay protected.

Australian crypto exchanges might be regulated below pre-existing monetary providers legal guidelines, suggests the newest session paper from the Treasury. https://t.co/V1Dr8DeZF8

— Cointelegraph (@Cointelegraph) October 16, 2023

Caroline Bowler, the CEO of BTC Markets informed Cointelegraph she was happy to have reached a brand new “key milestone” within the regulatory course of and regarded the foundations as a constructive development for the broader crypto business in Australia.

“It’s an ideal subsequent step for the Australian financial system. Digital belongings are so clearly the way forward for monetary providers. It’s crucial the nation retains tempo with our worldwide friends, with a strong regulatory framework,” stated Bowler.

Equally, Adrian Przelozny, the CEO of Unbiased Reserve recommended the Federal authorities on its suggestions to introduce stronger regulation and coverage change, telling Cointelegraph that these new proposals might assist restore belief within the crypto sector.

“We firmly consider these modifications will drive funding, present certainty to the sector and finally, enhance shopper safety.”

The overall counsel of Swyftx, Adam Percy, additionally agreed with a lot of the Treasury’s proposals, saying the first focus needs to be guaranteeing that crypto buyers can safely entry the advantages of blockchain know-how, whereas nonetheless permitting room for innovation.

Nonetheless, Jonathon Miller, the Managing Director of Kraken Australia, informed Cointelegraph he was involved that the brand new guidelines could be stuffing the crypto business right into a TradFi-shaped field.

“Australia is now within the unlucky scenario the place our regulation has taken a really very long time, so we’re taking the method of shoehorning crypto into current monetary providers regulation,” stated Miller.

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Nonetheless, Miller admitted that the session paper was a step in the proper path, particularly for offering much-needed regulatory certainty for crypto corporations working on Australian soil.

“We’re behind our world friends on the subject of implementing a crypto framework, so I respect the necessity to have one thing in place regionally to supply certainty to platforms like ours,” he added.

Liam Hennessy, a accomplice at Clyde & Co — a global legislation agency that has been aiding within the session course of — stated that the latest proposal from the Treasury “is smart” for the Australian crypto business.

Hennessy defined that the brand new guidelines will assist the nation catch as much as jurisdictions such because the European Union who’re additional alongside of their efforts to raised regulate crypto.

Moreover, he stated the Australian Monetary Companies (AFS) licensing regime might be fairly sophisticated, that means that native cryptocurrency exchanges and digital asset service suppliers might want to start making ready their purposes now.

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