Australia Integrates Crypto into Financial Services Regulations
Australia is poised to integrate digital assets into its established financial services framework, a move that mirrors global trends towards crypto regulation. The Australian Treasury has released a draft law that signifies a critical step in incorporating digital asset platforms (DAPs) and tokenised custody platforms (TCPs) into the existing regulatory landscape, placing them under the same scrutiny as traditional financial intermediaries.
Crypto Firms Face Financial Services Licensing Requirements
The core of the proposed legislation involves mandating that digital asset businesses secure financial services licenses. This would bring DAPs and TCPs under the jurisdiction of the Australian Securities and Investments Commission (ASIC). This will mean they are governed by the same rules as established financial institutions like banks and brokers. These businesses will be subject to greater oversight, strict compliance protocols, and increased accountability to safeguard consumer interests. Assistant Treasurer Daniel Mulino emphasized the intention to apply existing financial service regulations to digital assets, avoiding the need to create entirely new regulatory frameworks.
The impact on African tech firms, particularly those exploring the Australian market or partnering with Australian entities, will be significant. The regulatory shift ensures a level playing field with established financial players and increases investor confidence.
The final legislation.
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