The number of cryptocurrency exchanges operating in Australia is expected to increase rapidly due to the recently approved regulations. From now henceforth, the exchange platforms will only have to register and strictly adhere to the AML/CTF Rules. This bold move by the Australian authorities is expected to set a worldwide precedent, given that most governments currently maintain a tough stance against crypto exchanges, a factor that inhibits the proliferation of such institutions.
— AUSTRAC (@AUSTRAC) April 11, 2018
What Is AUSTRAC?
The fresh regulations were drafted by the nation’s financial watchdog, the Australian transaction Reports and Analysis Center (AUSTRAC). The rules explicitly states that all crypto exchanges must register before starting any operations within the country. Furthermore, the platforms have to abide by the AML/CTF bylaws. Usually, AML/CTF requires business to implement a program going by the same name, identify and validate their clients' details, and report transactions that are suspicious and/or exceed net worth of AUD 10,000.
Since the inception of the new regulations in early April, AUSTRAC has issued operation licenses to three digital currency exchanges. Additionally, the authority has since published a press statement revealing that non-compliant exchanges have to register freshly in accordance with the new rules before May 14, 2018. To ease the transition process, AUSTRAC has provided an easy to use registration form that has step-by-step guidelines.
Nicole Rose, AUSTRAC’s CEO, stated that crypto exchanges are pleased with the new regulations. She added that this amendment will protect businesses from money laundering and terrorism financing. Moreover, the rules will restore the public’s trust in the cryptocurrency sector. Rose concluded by saying that AUSTRAC has created a platform through which stakeholders can openly share information regarding virtual currencies.
Does This Create A Favorable Trading Environment For Users?
As of now, the regulatory measures imposed on virtual currencies worldwide have been either ambiguous or absolutely negative. For instance, Japan’s unfavorable rules are forcing cryptocurrency startups to seek alternative markets. Also, the central bank of India ordered all banking institutions to cease offering services to individuals and companies that deal with digital currencies.
The adoption of a clear standpoint by AUSTRAC has undoubtedly created a favorable environment for both crypto companies and hobbyists. This move further fortifies the trust of investors and service providers in the crypto space.
As mentioned earlier, the new rules have significantly eased the registration, licensing and operation of digital currency exchanges in Australia. As a result, the nation has become a potential hotspot for companies engaging in the cryptocurrency business. Soon, crypto exchanges are expected to flood the Australian market.
It's important to note that AUSTRAC isn't an endorsement, rather the exchange has followed the rules and regulations.
Registration by AUSTRAC of a digital currency exchange or remittance service provider does not constitute an endorsement of that business. For more information visit https://t.co/cLs39Q6yNB #digitalcurrency #remitters #regulation
— AUSTRAC (@AUSTRAC) April 12, 2018
If you want to learn more about AUSTRAC, you can head to their website and read the full description: http://www.austrac.gov.au/digital-currency-exchange-providers