Australia's financial regulator has proposed draft legislation to regulate cryptocurrency exchanges under the Australian Financial Services Licence (AFSL) framework. This move aims to strengthen compliance and consumer protection within the digital asset sector.
Assistant Treasurer Daniel Mulino announced the proposal, detailing plans to bring exchanges and custody platforms into the AFSL framework. This aligns Australia's regulatory approach with global standards, targeting regulatory gaps and enhancing legal clarity.
AFSL Inclusion for Australian Crypto Exchanges Announced
"The new framework will close regulatory gaps and provide legal clarity for digital asset participants, aligning Australia with major global peers." - Daniel Mulino, Assistant Treasurer, Australian Government
A$6.5 Million Threshold Set for Exchange Exemptions
Exempting platforms with transactions under A$6.5 million, the legislation anticipates higher compliance costs for larger exchanges. The initiative may limit smaller projects' burdens while ensuring robust compliance measures are maintained.
Insights suggest potential financial and regulatory shifts, with increased operational costs for some digital asset platforms. Past enforcement by AUSTRAC has already led to fewer registered exchanges, hinting at a tightening environment. These factors play into larger industry frameworks.
Regulatory Push Following 2022 FTX Collapse
The government's move follows the FTX collapse in 2022, seen as a catalyst for change. This incident underlines the need for clearer, enforceable regulations within the crypto exchange landscape.
Experts like Steve Vallas emphasize the importance of regulatory clarity. He asserts that cohesive efforts between industry leaders and regulators will shape Australia's global competitiveness, leveraging past lessons to improve future frameworks.