Australia Unveils Stringent Cryptocurrency Regulations Unveiling the Particulars

Australia is planning to implement stricter regulations for cryptocurrency firms, going beyond just exchanges. The Australian Securities and Investments Commission (ASIC) intends to require all crypto firms to be licensed under the country’s corporate law, according to a report by the Australian Financial Review. ASIC Commissioner Alan Kirkland has announced that an update to “Information Note 225” will be released in November, clarifying the regulation of certain cryptocurrency tokens and products under the Corporations Act. Kirkland emphasized that most major crypto assets should fall under the Act’s jurisdiction, resulting in increased oversight. This move aligns with Australia’s efforts to regulate the cryptocurrency industry due to concerns about consumer protection and platform vulnerabilities. Last year, the Australian Treasury proposed that crypto exchanges holding assets above a specific threshold would need to obtain an Australian Financial Services Licence (AFSL). The release of draft legislation, initially expected this year, is uncertain due to the upcoming federal election in 2024.