- The timeline is the one that indicates it could always take until the year 2025 for an Australian digital asset platform to receive a license under the freshly proposed regime.Â
- Australia is also the one that proposes a regulatory framework for different crypto exchanges and digital asset platforms.Â
Moreover, people need to make sure that on October 16, 2023, a public consultation paper by the Australian Federal Treasury regarding the proposed regulatory regime for different digital asset platforms is published. There is also a proposed framework that highlights the Australian Government’s intention to ensure consistent oversight and safeguards for consumers by regulating digital asset platforms and other intermediaries.
New Licensing Regime for Crypto Exchanges Proposed by Australia
Australia is the one that expects to release draft legislation that always covers licensing and custody rules for different crypto asset providers by the year 2024. And, later, when the legislation becomes law, there are exchanges that will always have 12 months to transition to the new regime, which was declared by Australia’s Treasury on Monday.
Licensing and Regulatory Changes
The timeline suggests that it could always take until 2025 for an Australian digital asset platform to receive a license under the freshly proposed regime. Still, people need to make sure that the developments always represent a significant step taken by the Government of Australia toward framing a crypto regulation policy.
Also, by the middle of the year 2023, the proposal was expected after being first declared in February 2023. Then, the delayed October consultation paper is the one that separates it from an earlier token mapping consultation paper. There is also token mapping, which is the process of identifying the key activities and functions of crypto products.
Government Involvement and Industry Impact
People need to also make sure that the proposal’s publication coincides with a speech by Australia’s Assistant Treasurer along with Minister for Financial Services Stephen Jones at the Australian Financial Review Crypto Summit (AFRCM).
It is also very important to note that Australia is the one that has been waiting for certainty over different digital asset regulations so it can very easily seek to catch up with the rest of the world. Later, the particular approach is consumer-protection-centric, with the broad net set just to capture many business models that are not currently regulated.
Lastly, it was also observed that the proposal released on Monday suggests that all the crypto exchanges that hold more than AUD 1500 in total assets would always require an Australian Financial Services license that is granted by the Australian Securities and Investments Commission.
There is also a paper that asks questions about 32 themes and then seeks written submissions by December 1, 2023. Additionally, the Treasury and Reserve Bank of Australia will also publish a joint report around the middle of 2024, which will also provide a stocktake on the central bank digital currency (CBDC) research in Australia.
Conclusion
People need to make sure that earlier this year, Australia was the one that decided to not make any decisions on a CBDC for some years due to different unresolved issues that surfaced at the end of the pilot project.
