According to news on October 16, the Australian Treasury said in a consultation paper titled “Regulation of Digital Asset Platforms” released on Monday that digital asset platforms that hold more than A$5 million ($3.2 million) or hold more than A$1,500 for individuals will need to obtain a license from the Australian Securities and Investments Commission (ASIC). The consultation paper proposes to regulate crypto trading platforms under existing financial services law, rather than developing new cryptocurrency-specific rules.
The obligations of crypto entities will be derived from existing financial services laws and will include filing financial records, monitoring market misconduct, and meeting solvency and cash reserve requirements. In addition, crypto companies will also be subject to further obligations in areas such as trading, staking and token creation. The Australian government will consult on the proposal before December 1. Draft legislation is expected to be introduced next year, after which trading platforms will have 12 months to ensure compliance.
