Australia Poised to Reform Cryptocurrency Rules
Australia is poised to reform its cryptocurrency rules, with proposed changes including taxation systems, investor protections, and licensing requirements for crypto service providers. The government is seeking feedback on the proposals.
In March of 2022, the treasury department released a first-of-its-kind consultation paper about the blockchain industry. Some of the proposed changes include a taxation system for cryptocurrency, protections for investors from unscrupulous dealers and methods of regulating digital banks, crypto exchanges, and brokers. The paper also suggests that crypto service providers should require a CASSP licence to operate.
Just two days prior to this proposal, FTX, a global crypto exchange, became the first ever to become licensed in Australia. Their Australian division got an Australian Financial Services Licence after acquiring an unnamed company that previously held the licence.
FTX CEO Sam Bankman-Fried said “The establishment of FTX Australia should provide all our local clients with the confidence of trading on a registered and licensed platform”, adding “Significant resources have been allocated to proactively engage with local regulators.”
Financial Services Minister Jane Hume commented on the proposal: “The government can’t guarantee your crypto any more than it can guarantee a painting or a share in a company, and nor should it. But we can make sure Australian exchanges, custodians and brokers work within a regulatory framework that is better, safer and more secure.”
The treasury department is now calling for feedback on its proposed changes.
