AUSTRAC Provides New Legal Framework For Australian Crypto-Exchanges

Regulation 1 min, 50 sec READ

by Chris Madill

AUSTRAC has implemented new laws governing digital currency exchanges in Australia, marking a progressive approach toward crypto-regulation within the country.

The Australian Transaction Reports and Analysis Centre (AUSTRAC) has implemented new laws to govern cryptocurrency exchanges. The regulations require all existing domestic exchanges to register with AUSTRAC before May 14, 2018, and all new exchanges to register prior to operation.

AUSTRAC will require registered exchanges to meet the country’s Anti-Money-Laundering (AML) and Counter-Terrorism-Financing (CTF) laws, providing the government with vital information about the nature of transactions within the exchanges. A recent AUSTRAC press release details what type of information the exchanges will be collecting:

“The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 requires regulated entities to collect information to establish a customer’s identity, monitor transactional activity, and report to AUSTRAC transactions or activity that is suspicious or involves large amounts of cash over $10,000.”

Nicole Rose, the CEO of AUSTRAC, has said that the new laws are being well received by crypto-exchanges and industry leaders in Australia:

“It’s recognised that this reform will help protect [industry leader’s] business operations from money laundering and terrorism financing, while regulation will also help strengthen public and consumer confidence in the sector,” she said.

Progressive Crypto Regulation

With AUSTRAC’s latest move perceived as a positive step by crypto-industry leaders, their response reflects the commitment to responsible governance by Australian authorities. Other examples of this sentiment can be found within the Australian Taxation Office’s (ATO) approach to crypto-taxation, which supports crypto by reaching out to the public for guidance on crypto-tax law reform, and who have been publicly open about their progressive understanding of cryptocurrency trade:

“The creation, trade, and use of cryptocurrencies is a rapidly evolving area. The ATO is continuing to work proactively both domestically and internationally to identify and respond to any issues related to the tax implications of cryptocurrencies, whether as a result of new types of transactions, new structures or new participants entering the increasing digitized environment.”

This positive news coming out of Australia comes in contrast to moves against cryptocurrency legitimacy in similar countries such as Canada this week.