- The Australian government plans to implement licensing requirements for crypto exchanges by 2024.
- Firms will have a 12-month transition period to comply with the new regulations.
- The Treasury aims to draft laws by mid-2023 to boost consumer protections for crypto investors and traders.
The Australian government released a consultation paper detailing plans to enact licensing requirements for crypto exchanges by 2024. Firms would have a 12-month transition period once legislation passes to get approved.
The Treasury expects to deliver draft laws by mid-2023. The framework aims to boost consumer protections for crypto investors and traders.
Under proposed rules, any exchange handling over A$1,500 per client or A$5 million in total assets would need licensing from the Australian Securities and Investments Commission.
Australia’s new proposal can provide regulatory clarity
The country currently lacks comprehensive crypto-specific regulations. The new regime would provide long-awaited regulatory clarity.
However, some warn that licensing could stifle innovation if applied too broadly beyond core trading platforms. NFT marketplaces may get swept up, for instance.
The paper launches a public consultation until December 1st. Australia also plans to deliver a central bank digital currency roadmap in 2024 after shelving immediate development earlier this year.