Australia Proposes Tighter Crypto Rules: Mandatory Licenses and Reviews

<p dir="ltr">The Australian government is proposing licensing cryptocurrency trading platforms, along with tighter oversight of customers’ funds. A proposal released today (Monday) detailed that Aussie crypto exchanges would need to obtain a license from the local financial services regulator.</p><p dir="ltr">New Crypto Rules in Australia</p><p dir="ltr">Still, at a consultation stage, the Aussie government seeks feedback on its proposal until 1 December 2023. Consultation on the draft bill will continue next year.</p><p dir="ltr">The “government is acting methodically to ensure that consumers are adequately protected, and innovation can flourish,” Australian Treasurer Jim Chalmers said in a statement, adding that the rules align with other jurisdictions.</p><p dir="ltr">The proposed changes will apply to <a href="https://www.financemagnates.com/cryptocurrency/crypto-exchange-jpex-moves-to-deregister-australia-entity-hk-blocks-access/">exchanges </a>holding more than US$ 3.2 million (AU$ 5 million) or more than US$ 946 (AU$ 1,500) per individual, mandating them to obtain a license from the Australian Securities and Investment Commission (ASIC). </p><p dir="ltr">The regulator will also review the minimum standards of digital assets like tokens.</p><blockquote><p lang="en" dir="ltr">