The Australian government has proposed a bill that would require crypto exchanges to obtain a financial license from ASIC. The goal is to protect consumers and weed out scammers.
Australia is preparing a new law for crypto exchanges and custodians
Australia has released a draft law that equates crypto services with financial institutions. The document proposes to create two new product categories – “digital asset platform” and “tokenized custodial platform”. To operate, companies will have to obtain an Australian Financial Services License (AFSL) from the regulator ASIC.
Assistant Treasurer Daniel Mulino said that the goal of the bill is to “legitimize bona fide players and weed out scammers”. Violators will face fines of up to 16.5 million Australian dollars (≈$10.8 million) or 10% of turnover.
Obligations and exemptions
Platforms will be subject to a set of obligations, including asset custody standards, transparent staking and rules for wrapped tokens. Small services with a volume of less than $6.6 million per year and deposits of up to $3,300 per client will be exempt from regulation.
Industry reaction
Large exchanges have supported the initiative. Swyftx, Kraken, Crypto.com and KX Australia said the new rules balance innovation and investor protection. They stressed that now responsible operators will not lose out in competition with “gray-zone” services.
Consultations with business will continue until October 24. After that, the government will present the final version of the law as the basis for its “digital assets roadmap”.
Related: Stablecoin Regulations Worldwide: What Holders Need to Know
