Australia is poised to implement new regulations for cryptocurrency exchanges, requiring them to obtain financial services licenses by November, as reported by the Australian Financial Review. Alan Kirkland, a commissioner at the Australian Securities and Investments Commission (ASIC), highlighted at a crypto summit in Sydney that many crypto asset firms will likely need a license under existing laws, as they consider widely traded crypto assets to be financial products.
Kirkland emphasized that licensing will enhance consumer confidence and market integrity while mitigating risks, both vital for fostering financial innovation. With nearly a third of Australian youth investing in crypto, the country’s largest bank, Commonwealth Bank, has recently imposed restrictions on transfers to crypto exchanges to safeguard customers from rising scams. The Australian Federal Police reported losses of 180 million Australian dollars ($122 million) due to such scams this year.
In light of these developments, crypto exchanges are advocating for greater regulation, believing it will drive the industry’s growth. Jason Titman, CEO of Australian exchange Swyftx, stated that a regulated market could significantly increase global crypto ownership.
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