Australian crypto exchanges have praised plans from the Australian Treasury to manage cryptocurrency exchanges beneath pre-existing monetary companies licensing measures.
In an Oct. 16 session paper, the Treasury outlined a brand new suite of proposed laws, that prompt regulating cryptocurrency exchanges beneath current monetary companies guidelines in addition to introducing a wealth of latest pointers for all Australian corporations dealing in digital belongings.
Talking on the Australian Monetary Opinions Crypto Summit occasion on Oct. 16, Australian Treasury Stephen Jones mentioned the brand new regime was centered on three main areas: offering a framework for trade 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 shall be regulated beneath pre-existing monetary companies legal guidelines, suggests the most recent session paper from the Treasury. https://t.co/V1Dr8DeZF8
— Cointelegraph (@Cointelegraph) October 16, 2023
Caroline Bowler, the CEO of BTC Markets advised Cointelegraph she was happy to have reached a brand new “key milestone” within the regulatory course of and regarded the principles as a constructive development for the broader crypto trade in Australia.
“It’s an excellent subsequent step for the Australian financial system. Digital belongings are so clearly the way forward for monetary companies. It’s crucial the nation retains tempo with our worldwide friends, with a strong regulatory framework,” mentioned Bowler.
Equally, Adrian Przelozny, the CEO of Unbiased Reserve counseled 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 imagine these adjustments will drive funding, present certainty to the sector and in the end, improve client 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.
Nevertheless, Jonathon Miller, the Managing Director of Kraken Australia, advised Cointelegraph he was involved that the brand new guidelines can be stuffing the crypto trade right into a TradFi-shaped field.
“Australia is now within the unlucky state of affairs the place our regulation has taken a really very long time, so we’re taking the strategy of shoehorning crypto into current monetary companies regulation,” mentioned Miller.
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Nonetheless, Miller admitted that the session paper was a step in the best course, particularly for offering much-needed regulatory certainty for crypto corporations working on Australian soil.
“We’re behind our international friends in the case of implementing a crypto framework, so I respect the necessity to have one thing in place regionally to offer certainty to platforms like ours,” he added.
Liam Hennessy, a accomplice at Clyde & Co — a world regulation agency that has been aiding within the session course of — mentioned that the most recent proposal from the Treasury “is sensible” for the Australian crypto trade.
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 mentioned the Australian Monetary Companies (AFS) licensing regime could be fairly difficult, which means that native cryptocurrency exchanges and digital asset service suppliers might want to start getting ready their purposes now.
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