Australian regulators are reportedly introducing new guidelines requiring cryptocurrency exchanges to secure financial services licenses. According to The Australian Financial Review (AFR), this move will expand the licensing requirements beyond those related to digital currency exchanges.
At the AFR Crypto and Digital Assets summit in Sydney on Sept. 23, Australian Securities and Investments Commission (ASIC) commissioner Alan Kirkland explained that new requirements are needed because the regulator believes that the Corporations Act already covers most significant cryptocurrencies, such as Bitcoin and Ethereum.
The ASIC is preparing to revise Information Sheet 225 of the Corporations Act to clarify how specific cryptocurrency tokens and products should be regulated, Kirkland mentioned ahead of his event. He emphasized that while the ASIC favors fostering responsible innovation in the crypto space, it is also wary of consumer risks and potential market misconduct. The aim is to tackle these concerns through a solid regulatory framework. The Commissioner stated:
ASIC expects to issue updated draft guidance in the coming months, which we will open up to feedback from the industry.
Senator Bragg slams crypto regulation stagnation
Senator Andrew Bragg recently criticized Australian regulators for their lack of proactive measures in regulating the cryptocurrency market. On Sept. 23, he posted on X, sharing his speech from an AFR event. In his address, he expressed concern that Australia has shifted from being a leader in the crypto space to falling behind over the past two and a half years.
The Senator pointed out that a few years back, there were expectations for Australia to establish clear crypto regulations. Finance Minister Stephen Jones highlighted this and stated that the Labor Party would focus on “safety and transparency” to crypto. However, Senator Bragg criticized the government for “completely abandoning” the regulatory framework for crypto asset secondary service providers (CASSP) that it proposed in 2022.
After the election, instead of moving forward, Labor only re-released the consultation paper after 18 months, and the senator noted they haven’t been very vocal about it since. Moreover, he mentioned that Australia will unlikely see any progress on cryptocurrency regulation in the current Parliament term.
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