According to reports, Australian regulators are drafting a new guidance that will mandate cryptocurrency exchanges to obtain financial services licenses.
According to The Australian Financial Review (AFR), the licensing requirements for crypto exchanges in Australia are expected to be expanded beyond those relevant to digital currency exchanges.
Alan Kirkland, the Commissioner of the Australian Securities and Investments Commission (ASIC), has stated that the new requirements are essential due to the regulator’s belief that the Corporations Act encompasses the most significant crypto assets, including Bitcoin and Ether.
The Commissioner disclosed the authority’s intentions during the AFR Crypto Crypto and Digital Assets summit in Sydney on September 23.
In the coming months, we will see the publication of new regulatory guidance.
Before his appearance at the event, Kirkland reportedly stated that the ASIC is updating the Corporations Act’s Information Sheet 225 to provide a more detailed explanation of the regulatory treatment of specific crypto tokens and products.
Commissioner Kirkland told Cointelegraph, “ASIC’s message is that a substantial number of crypto-asset firms in the Australian market are likely to require a license under the current law.”
He observed that the ASIC promotes responsible innovation in the crypto industry. Nevertheless, it continues to harbor apprehensions regarding the potential for market misconduct and consumer damage, which it intends to resolve through the regulatory framework.
The Commissioner stated, “ASIC anticipates the release of revised draft guidance shortly, and we will invite industry feedback.”
“ASIC believes that licensing and its subsequent protections will mitigate risk while bolstering consumer confidence and market integrity — two elements that are crucial in encouraging innovation in the financial system.”
Senator Andrew Bragg: Australia has moved from a crypto trailblazer to a laggard
Senator Andrew Bragg condemned Australian regulators for failing to implement a proactive strategy for overseeing the cryptocurrency market, which coincided with the announcement of ASIC’s imminent guidance.
Senator took to X on September 23 to share his address at the AFR event, arguing that Australia has transitioned from a crypto leader to a crypto delinquent over the past two and a half years.
The Senator mentioned in his speech that Australia anticipated establishing crypto regulation a few years ago when Finance Minister Stephen Jones stated that the Labor Party’s approach to crypto would prioritize “transparency and safety.”
The 2022 regulatory framework for crypto asset secondary service providers (CASSP) was “completely abandoned” by the government, according to Senator Bragg, following the election. The lawmaker observed that Labor has not been vocal about redistributing the consultation paper after 18 months.
He also predicted that Australia is unlikely to advance any crypto regulation during the current Parliament term, as stated in the following:
“Labor will not deliver any crypto legislation in this term of Parliament. Labor has wasted three years by solely focusing on the needs of their close vested interests […] By locking Australia in the crypto slow lane, Labor has stifled innovation and denied Australians the opportunities to reap the benefits that blockchain provides.”
Australia’s Committee on Economics Legislation, as previously reported by Cointelegraph, advised against the passage of Senator Bragg’s crypto regulation bill in early September 2024, citing the necessity for the government to continue researching the matter.
Introduced in March 2023, the draft law offered regulatory recommendations for stablecoins, exchange licensing, and custody requirements.
