Australia To Require Financial Services Licenses For Crypto Exchanges

According to Cointelegraph, Australian regulators are preparing new legislation to mandate cryptocurrency exchanges to obtain financial services licenses. The Australian Financial Review (AFR) reported that the licensing requirements for crypto exchanges in Australia will extend beyond those related to digital currency exchanges. Alan Kirkland, commissioner of the Australian Securities and Investments Commission (ASIC), stated that the new requirements are necessary because the Corporations Act encompasses most major crypto assets like Bitcoin (BTC) and Ether (ETH). Kirkland disclosed the authority’s plans at the AFR Crypto and Digital Assets summit in Sydney on September 23. The ASIC is set to update the Corporations Act’s Information Sheet 225 to provide more clarity on how specific crypto tokens and certain products should be treated from a regulatory perspective. Kirkland mentioned that a significant number of crypto asset firms in the Australian market are likely to need a license under the current law, as many widely traded crypto assets are considered financial products. The updated legislation is expected to be issued by November 2024. This is a developing story, and further information will be added as it becomes available.