According to the consultation document, Australia’s Treasury has proposed regulating cryptocurrency exchanges in line with the rules imposed on traditional financial institutions. Australian Finance Minister Stephen Jones said tightening requirements for digital asset companies would provide a foundation for the development of cryptocurrencies and other innovations, clarify oversight of cryptocurrency service providers and ensure user protection.
Local crypto market participants supported the government’s proposal. BTC Markets CEO Caroline Bowler believes this will be a great move for the Australian economy. According to Bowler, digital assets are the future of financial services, so it is important that the country does not lag behind other international partners in regulating cryptocurrencies.
Independent Reserve CEO Adrian Przelozny also praised the federal government for introducing stricter regulations as it will help restore confidence in the cryptocurrency sector. The changes will attract investment into the sector and ultimately improve consumer protection. Swyftx General Counsel Adam Percy also noted that authorities must provide conditions for the safe use of the benefits of blockchain and cryptocurrencies. However, the managing director of the Australian division of the Kraken crypto exchange, Jonathon Miller, is concerned that the new rules will “push” the crypto industry into the rigid framework of TradFi.
“Australia has taken the unfortunate position of spending too much time developing regulation of cryptocurrencies, and will end up subjecting cryptocurrencies to the rules of traditional financial markets. But let there be at least something that will provide certainty for cryptocurrency platforms,” Miller said.
Liam Hennessy, a partner at international law firm Clyde & Co, explained that the new rules will help Australia catch up with the European Union, which has developed the EU Cryptocurrency Act (MiCA). Obtaining a financial services provider license in Australia can be quite difficult, so local cryptocurrency platforms should start preparing applications now, Hennessy warned.
In July, Australian banking group National Australia Bank (NAB) banned customers from making payments to cryptocurrency exchanges, calling these transactions high-risk. Perhaps the new rules will soften the attitude of banks towards the industry.
Source: Bits

I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.