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<div class="coinjournal">
 <ul>
  <li>Exchanges with specific asset levels must obtain an Australian Financial Services License</li>
  <li>The draft legislation is expected to go out by 2024.</li>
  <li>A consultative process seeks input from stakeholders and the public on 32 key regulatory themes.</li>
 </ul>
 <p>In a significant move towards regulating the rapidly expanding <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a>currency industry in <a rel="noopener noreferrer nofollow" title="Australia" href="https://thebittimes.com/tag/australia.html">Australia</a>, <a rel="noopener noreferrer nofollow" title="Australia" href="https://thebittimes.com/tag/australia.html">Australia</a>’s Treasury has unveiled plans to introduce a comprehensive <a rel="noopener noreferrer nofollow" title="licensing" href="https://thebittimes.com/tag/licensing.html">licensing</a> <a rel="noopener noreferrer nofollow" title="regime" href="https://thebittimes.com/tag/regime.html">regime</a> for <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a> <a rel="noopener noreferrer nofollow" title="exchange" href="https://thebittimes.com/tag/exchange.html">exchange</a>s.</p>
 <p>The initiative is designed to enhance consumer protection, bring much-needed clarity to the digital asset sector, and pave the way for the nation to align with global regulatory standards.</p>
 <h2 id="the-newly-proposed-regulatory-framework">The newly proposed regulatory framework</h2>
 <p>Under the newly proposed framework, cryptocurrency exchanges operating in Australia must obtain an Australian Financial Services license (AFSL) from the Australian Securities and Investments Commission (ASIC).</p>
 <p>This regulatory measure will be applicable to exchanges that hold more than AUD 1,500 of any single client’s assets or have total assets exceeding AUD 5 million. The approach seeks to ensure that exchanges are equipped to safeguard the interests of their customers and adhere to robust financial and operational standards.</p>
 <h2 id="draft-legislation-by-2024">Draft legislation by 2024</h2>
 <p>The Treasury’s timeline outlines a plan to release draft legislation covering licensing and custody rules for crypto asset providers by 2024. Once the legislation is enacted into law, crypto exchanges will have a 12-month transition period to align their operations with the new regulatory framework. This means it may take until 2025 for an Australian digital asset platform to receive a license under this fresh regulatory regime.</p>
 <p>The proposed regulatory framework’s approach is consumer-centric, aiming to strike a balance between ensuring consumer protection and fostering innovation. It acknowledges that the digital asset landscape is evolving rapidly and seeks to provide clear guidelines to industry participants.</p>
 <h2 id="consultation-and-feedback">Consultation and feedback</h2>
 <p>The government has initiated a consultation process, soliciting feedback from industry stakeholders and the public. This approach underscores the desire to create well-informed, balanced, and acceptable regulations for the broader community.</p>
 <p>Caroline Bowler, CEO of BTC Markets responded to the consultation paper from the Commonwealth Treasury regarding the proposed regulation of <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a>-asset <a rel="noopener noreferrer nofollow" title="exchange" href="https://thebittimes.com/tag/exchange.html">exchange</a>s in <a rel="noopener noreferrer nofollow" title="Australia" href="https://thebittimes.com/tag/australia.html">Australia</a> via X (formerly Twitter) and termed the development a “key milestone.”</p>
 <blockquote class="twitter-tweet" data-width="500" data-dnt="true">
  <p lang="en" dir="ltr">Caroline Bowler, CEO of BTC Markets responds to the consultation paper from the Commonwealth Treasury regarding proposed regulation of crypto-asset exchanges in Australia:</p>
  <p>“At BTC Markets, we are pleased to have reached this key milestone. A positive progression for the crypto… pic.twitter.com/gyso38LmTX</p>
  <p>— BTC Markets (@BTCMarkets) October 16, 2023</p>
 </blockquote>
 <p></p>
 <p>The proposal includes 32 key themes and invites written submissions by December 1, 2023, reflecting the government’s intention to involve all relevant stakeholders in shaping the final regulations.</p>
 <h2 id="australian-central-bank-digital-currency-cbdc-research">Australian Central Bank Digital Currency (CBDC) research</h2>
 <p>In addition to the crypto exchange regulation, Australia is making strides in the field of central bank digital currency (CBDC) research.</p>
 <p>The Reserve Bank of <a rel="noopener noreferrer nofollow" title="Australia" href="https://thebittimes.com/tag/australia.html">Australia</a> and the Treasury will jointly publish a report in 2024, offering insights into CBDC research within the nation and outlining a roadmap for future work. This move reflects a coordinated approach to exploring the possibilities and implications of digital currencies.</p>
 <p>Australia’s delayed but anticipated regulatory proposal signals a robust commitment to regulating the crypto industry in a manner that balances protection and innovation.</p>
 <p>As the consultation process unfolds, the nation is gearing up to join its international peers in establishing a framework that addresses the unique challenges of the digital asset space while safeguarding the interests of consumers.</p>
</div>
<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/australia-proposes-new-licensing-regime-for-crypto-exchanges-tbt66462.html">https://thebittimes.com/australia-proposes-new-licensing-regime-for-crypto-exchanges-tbt66462.html</a></p>

Australia proposes new licensing regime for crypto exchanges

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