Key Takeaways:
- Australian regulators will expand financial licensing for cryptocurrency firms, beyond current exchange regulations.
- ASIC’s updated rules will cover major cryptocurrencies like Bitcoin and Ether under the Corporations Act.
- Senator Andrew Bragg criticized the slow progress in Australia’s crypto regulations, saying the country has lost its leadership in the space.
Australian regulators are set to expand financial services licensing requirements for cryptocurrency firms, moving beyond current regulations for digital currency exchanges.
Alan Kirkland, Commissioner of the Australian Securities and Investments Commission (ASIC), announced that these new rules are necessary because the Corporations Act already covers major cryptocurrencies like Bitcoin and Ether.
🇦🇺 Australia's regulator plans to introduce compulsory licensing for most cryptocurrency companies.https://t.co/zsWJnKQDHu
— GN Crypto (@GNcrypto_news) September 23, 2024
During the AFR Crypto and Digital Assets summit in Sydney, Kirkland explained that ASIC will soon update its regulatory guidance to clarify how certain crypto tokens and products should be governed.
He emphasized that licensing would mitigate risks, enhance consumer confidence, and maintain market integrity.
However, Senator Andrew Bragg criticized Australia’s slow progress on crypto regulation, arguing that the country has lost its leadership position in the global crypto market.
"In the space of just two and half years, Australia has gone from crypto leader to crypto laggard."
— Senator Andrew Bragg (@ajamesbragg) September 23, 2024
Despite earlier promises from the government to prioritize safety and transparency, Bragg believes Australia is now lagging behind in regulating the sector.
His proposed crypto regulation bill, which focused on stablecoins and exchange licensing, was recently rejected by Australia’s Committee on Economics Legislation.
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