Australia while forging its own path instead of hanging around like a “wait and see outlook” is indeed supporting the cryptos especially after seeing the increase in the mainstream adoption of digital assets and is showing a non-stop positive attitude in terms of preparing cryptocurrency regulations.
In the continuation through the latest release (PDF), Australian Securities and Investment Commission (ASIC) has announced its 2018–19 to 2021–22 corporate plan and enhanced vision and missionstatements wherein the regulator is launching a new project determining on the usage and prevalence of cryptocurrencies across industries which is reasonable, and neither stifling nor damaging, rather, they could be viewed as progressive and potentially upending for both the country and cryptocurrencies in general.
ASIC while implementing some of its bigger plans for crypto exchange registration and regulations devising certain enactment to avoid AML and CTF.
Based on thereleasethe regulator has identified potential harms from technology driven by the growing digital environment and structural changes in financial services and markets and in regards that it is ensuring it would formulate a policy for “applying the principles for regulating market infrastructure providers to crypto exchanges.” The crux is to bring the crypto exchange sector under the same scrutiny of traditional stock exchanges and financial market operators.
Further, the watchdog added:
“We will continue to focus on monitoring threats of harm from emerging products like ICOs and cryptocurrencies, cyber resilience, the adequate management of technological solutions by firms and markets, and misconduct that is facilitated by or through digital and/or cyberbased mechanisms.”
Earlier in April this year, the Australian regulator suggested it would be adopting a closer stance on ICOs. John Price, ASIC Commissioner alerted about the opportunistic mood ominating in ICOs – including businesses or people looking to undertake an ICO because it is seen as an easy, low regulation and low-cost option which could lead to immature businesses coming to market.
Operators of digital currency exchange businesses are required to register with Australia’s financial intelligence agency AUSTRAC. Under the new regulation, digital currency exchange (DCE) providers have to obligate certain rules:
• Enroll and register with AUSTRAC
• Establish, implement and maintain an AML/CTF program, which sets the framework for businesses to comply with their obligations, including customer due diligence requirements
• Report threshold transactions and suspicious matters to AUSTRAC, and last but not the least
• Keep appropriate records.
Also, it is important to note the registration by AUSTRAC ofa cryptocurrency exchange or remittance service provider does not constitute an endorsement of that business or compliance with any anti-money laundering and counter-terrorism financing (AML/CTF) obligations. Digital currency exchange (DCE) providers are not allowed to put AUSTRAC’s logo on their websites even if they are listed.