Australia Moves to License Crypto Firms Under Corporations Law
The Australian Securities and Investments Commission (ASIC) is planning to extend licensing requirements to a broader range of crypto firms, not limited to exchanges.
ASIC Commissioner Alan Kirkland stated that most significant crypto assets likely fall under the scope of the Corporations Act. An update to "Information Paper 225" is expected by November to clarify the regulatory framework for specific crypto tokens and products.
This regulatory shift follows a proposal from the Australian Treasury last year, which sought to mandate that crypto exchanges holding substantial assets obtain an Australian Financial Services Licence.
Although an exposure draft was anticipated this year, uncertainty surrounds whether the bill will be introduced before the upcoming federal election.
Concerns about the risks associated with crypto assets have prompted Australian authorities to adopt a more cautious approach. Since July 2023, ASIC has reported the removal of over 7,300 scam websites, with 615 linked to cryptocurrency.
Additionally, a recent ruling revealed that the Australian Competition and Consumer Commission identified that more than half of crypto-related advertisements on Facebook were either scams or breaches of Metaâs advertising policies.
The push for regulation reflects a growing recognition of the vulnerabilities present within the crypto space.
The Treasury's earlier statements emphasized the necessity of regulatory measures to safeguard consumers amid increasing incidents of fraud and deception in the sector.