The Australian Treasury has published a consultation report on cryptocurrency asset regulations. The report stated that a series of new obligations are planned to be imposed on cryptocurrency trading platforms. Officials stated that they will evaluate the opinions received regarding the proposed regulations, and consultations will continue until December 1, 2023.
Australian Treasury Gets Ready for Crypto Asset Regulations
The Australian Treasury has published a consultation report proposing a new set of standards for cryptocurrency regulations. The report stated that additional obligations are planned to be imposed on cryptocurrency trading platforms.
Australian regulators expressed that a broad regulatory framework needs to be established for cryptocurrency trading platforms in order to protect platform customers from potential risks. The Australian Treasury also stated that existing regulations could be adopted to regulate digital asset platforms and recommended the utilization of Australian financial services laws to regulate these platforms:
“The proposed regulatory framework will be applicable to digital asset platforms that pose similar risks as organizations operating in the traditional financial system. To ensure consistent supervision and safeguards for consumers, it is recommended to regulate digital asset platforms by utilizing the Australian financial services framework.”
The report also emphasized that implementing a broad regulatory framework for cryptocurrency platforms would be an important move for innovation. Regulators also referred to existing laws for regulating cryptocurrency platforms and indicated December as the completion date for the consultation process.
Consultations Will Continue Until December 1, 2023
As significant developments regarding global cryptocurrency asset regulations continue to unfold, the Australian Treasury has taken an important step in cryptocurrency regulations. Although the Australian Treasury highlighted existing laws for regulating digital asset platforms in its consultation report, it has initiated a new consultation process for regulations.
According to the report published by the Australian Treasury, opinions are being sought from relevant parties, and the consultations will continue until December 1, 2023. If the proposed regulations are implemented in the future, cryptocurrency trading platforms will face a series of new obligations, including the requirement for licenses.
