The Australians Has Unveiled A Plan To Regulate The Crypto Market
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Australia’s government, led by the center-left Labor Party, proposed a new regulatory structure for cryptocurrencies that would subject exchanges to existing financial services laws and promised to tackle the issue of banking denial. This comes on the eve of the federal election, which is due no later than May 17. According to current polls, there is an even balance of power between the Labor Party of current Prime Minister Anthony Albanese and the opposition coalition led by Peter Dutton. The Finance Ministry said on March 21 that cryptocurrency exchanges, custodial services and some brokerage firms that trade or store cryptocurrencies will be subject to the new laws. The new regime imposes on cryptocurrency companies the same regulatory requirements that exist for other financial services companies in the country: protection of customer assets, mandatory Australian financial services license and compliance with minimum capital requirements. In August 2022, the government initiated a series of industry consultations to develop a regulatory framework for cryptocurrencies. “Our legislative reforms will extend existing financial services laws to key digital asset platforms, but not to the entire digital asset ecosystem,” the finance ministry said in a statement. Small platforms and startups below a certain size, as well as companies developing blockchain software or creating digital assets that are not classified as financial products, will be exempt from the new rules. Payment stablecoins will be treated as a type of store of value under the government’s payment licensing reforms; however, some stablecoins and “wrapped” tokens will be exempt. “Trading these products on the secondary market will not be considered trading activity, and the platforms on which they are traded will not be considered market operators solely because of that trading activity,” the Ministry of Finance said. A Comprehensive Approach To The Crypto Industry As part of its crypto agenda, the…
Filed under: News - @ March 22, 2025 6:25 pm