Crypto Exchanges Will Need To Register for Financial Services License Under New Australian Proposal
The Australian government is floating a proposal that if implemented will require crypto exchanges to seek licensing from the country’s financial services and financial markets regulator to operate.
According to the proposal, a digital asset intermediary must obtain an Australian financial services license granted by the Australian Securities and Investments Commission (ASIC) to “issue and deal in digital asset facilities.”
The proposal says that digital asset intermediaries holding assets with a value not exceeding $5 million AUD ($3.18 million) are exempt from the Australian financial services license requirements.
The proposal also ropes in crypto brokers and other dealers in the envisaged licensing regime for Australia.
“A person who deals in, or arranges for another person to use, a digital asset facility in the ordinary course of a business that is not primarily a financial services business, does not need to hold an Australian financial services license if:
(i) They are dealing in a digital asset facility provided by a licensed platform provider; and
(ii) the dealing does not involve digital assets that are financial products.”
With regard to the various forms of market misconduct such as “market manipulation, false trading and market rigging, wash sales, and fictitious transactions,” the proposal places the burden of fighting the vices on crypto exchanges.
According to the proposal, crypto exchanges will be required to “have and apply ‘listing criteria’ for any product made available for transactional functions on its platform” and ensure that digital asset transactions only occur after making sufficient disclosures on the particular token or tokens.
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Author: Mark Emem
