Australia to Require Crypto Exchanges to Obtain Financial Services Licenses

Australian regulators are preparing new laws that will require crypto exchanges to secure a financial services license, according to reports from The Australian Financial Review (AFR).

These new licensing rules are expected to introduce stricter requirements than those currently in place for digital currency exchanges.

Alan Kirkland, a commissioner at the Australian Securities and Investments Commission (ASIC), emphasized the need for these changes, pointing out that major cryptocurrencies like Bitcoin and Ethereum fall under the Corporations Act. He discussed this during the Crypto and Digital Assets meeting held in Sydney on September 23.

ASIC is set to revise its regulatory framework in November 2024, aiming to offer more precise guidelines on how various crypto tokens and products should be classified and regulated under the Corporations Act, as indicated in the upcoming update to Information Section 225.

Kirkland indicated that many cryptocurrency businesses in Australia could be required to obtain a financial services license, given that several popular cryptocurrencies are considered financial products under existing laws.