Australia to Require Financial Licenses for Crypto Firms, Enhancing Consumer Protection
- ASIC plns to rquir finncil srvics licnss for crypto compnis, nhncing consumr protction nd mrkt stbility.
- Upcoming guidnc ims to clrify rgultory sttus of spcific digital tokns nd products undr th Corportions Act.
- Sntor Brgg criticizs Austrlis rgultory lg, urging for prompt rforms to rgin crypto ldrship.
Th Austrlin cryptocurrncy sctor is poisd for notbl trnsformtion s rgultors intnsify thir ovrsight. Th Austrlin Scuritis nd Invstmnts Commission (ASIC) plns to rquir crypto compnis to obtin finncil srvics licnss, thus bringing thm undr th Corportions Act. This inititiv highlights n incrsing mphsis on consumr sfty nd mrkt stbility.
At th AFR Crypto nd Digitl Assts summit in Sydny, ASIC Commissionr Aln Kirklnd dtild ths intntions. Th forthcoming guidnc, xpctd in th coming months, will updt Informtion Sht 225 of th Corportions Act. This rvision sks to clrify th rgultory sttus of spcific tokns nd products. ASIC blivs tht significnt numbr of crypto-sst firms will nd to comply with th licnsing rquirmnt bsd on xisting lws.
Whil rcognizing th potntil for innovtion in th digital currency rn, Commissionr Kirklnd xprssd ASICs concrns bout consumr sfty nd mrkt misconduct. Th licnsing frmwork is viwd s mns to ddrss ths issus, nhncing consumr trust nd mrkt intgrity.
ASIC blivs tht licnsing nd its subsqunt protctions will mitigt risk whil bolstring consumr confidnc nd mrkt intgrity, notd Commissionr Kirklnd. Public consulttion on th drft guidnc is xpctd, llowing industry fdbck to shp th finl frmwork.
Australias Crypto Lag
This rgultory tightning follows criticism from Sntor Andrw Brgg, who contnds tht Austrli hs lggd in its pproch to digital currncy rgultion. During spch t th sm summit, Sntor Brgg xprssd concrn bout Austrlis dclin from bing crypto ldr to crypto lggrd in rcnt yrs. H citd th bndond 2022 frmwork for crypto sst scondry srvic providrs (CASSP) s clr sign of govrnmnt inction.
Additionlly, Sntor Brgg prdictd tht th currnt Prlimnt is unlikly to pss ny significnt rgultions bfor th nxt lction. H ccusd th Lbor govrnmnt of nglcting th industry nd hindring innovtion by prioritizing vstd intrsts. Notbly, th Committ on Economics Lgisltion rcntly rcommndd ginst Sntor Brggs own digital currency rgultion bill, mphsizing th nd for furthr govrnmnt rsrch.
Mndtory finncil srvics licnss rprsnt ky dvnc in rgultory ovrsight of Austrli. Whil som s this s brrir to innovtion, th focus on consumr protction is clr. Th coming months will b crucil s ASIC rlss updtd guidnc, dtrmining if Austrli cn rgin its ldrship or rmin in th crypto slow ln, s Sntor Brgg suggsts.
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Text source: TronWeekly
