Australia To Create The Regulator of Digital Сurrencies Market
RegulationBit News Today1 min read
As of 3 April, Australia began enforcing updated industry guidelines for cryptocurrency exchanges. A new set of Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) laws took effect, requiring Digital Currency Exchanges (DCEs) to register with the Australian Transaction Reports and Analysis Centre (AUSTRAC).
Digital currency exchanges operating in the country are subject to monitoring by AUSTRAC, the national financial intelligence agency, for potential money laundering and terrorism financing. This includes a wide variety of cryptocurrencies like bitcoin, Ethereum, and Ripple. The new rules are the result of a 2016 review of AML/CTF legislation and cover any exchange between fiat and cryptocurrency.
Existing exchanges were given transitional terms to submit their registration and enrolment. AUSTRAC has said it will show leniency on enforcement until 2 October 2018. Failing to follow these exchange requirements carries penalties ranging from two to seven years of imprisonment and fines between $105,000 and $420,000.
AUSTRAC CEO Nicole Rose noted that the agency gained expanded opportunities to exchange intelligence regarding cryptocurrency use with government and industry partners. This will help combat illicit activities using cryptocurrencies, such as the sale of illicit drugs and firearms. The Australian Criminal Intelligence Commission has warned of increasing use of cryptocurrencies by criminal groups.
The Australian Digital Commerce Association (ADCA), an industry group, has worked closely with AUSTRAC over the past 18 months to develop these regulations. Joseph stated that the association aimed to establish oversight and formal regulations so industry participants could meet proper standards.
Since the laws went into effect, four of the seven major DCEs operating in Australia have already received licenses from AUSTRAC. The measures mirror a broader international shift toward subjecting cryptocurrency transactions to counter-terrorism financing and anti-money laundering rules.
