Australia is stepping up its oversight of digital
assets, aiming to bring crypto exchanges and custody providers under the same
rules as traditional financial institutions.
The government released a draft law that could reshape
the country’s crypto market, signaling tighter supervision and stronger
consumer protections.
Stricter Licensing Requirements
The draft legislation requires exchanges to obtain an
Australian Financial Services License (AFSL), placing them under the
supervision of the Australian Securities and Investments Commission (ASIC).
Currently, only platforms trading major assets like
Bitcoin are registered with AUSTRAC. Under the new rules, all digital asset
operators would need formal authorization to operate.
The law outlines requirements for wrapped tokens,
staking, and the broader token infrastructure. Exchanges must implement secure
custody practices, proper settlement procedures, and clear disclosure
protocols. Regulators could impose penalties up to AUD 16.5 million, either
calculated as a share of annual revenue or the financial benefit gained from
violations.
Targeted Rules and Penalties
Low-risk operators could qualify for exemptions. Firms
holding under AUD 5,000 per customer and processing less than AUD 10 million
annually may not need full licensing. Treasury officials said these thresholds
mirror those used for other financial products, reducing the burden on smaller
firms.
More from Australia:
Expect ongoing updates as this story evolves.
This article was written by Jared Kirui at www.financemagnates.com.
Source link
