Australia Looks To Regulate Cryptocurrency Exchanges

Australia Looks To Regulate Cryptocurrency Exchanges

Australian Parliament is set to vote this week on regulating Cryptocurrency exchanges in a change to the nations anti money laundering laws. The change comes as Bitcoin the most prominent Cryptocurrency hit an all time high of $7,953 AUD after a strong rally this week due to the Bitcoin Gold hard fork.

Many high profile individuals have hit out stating Bitcoin is likely to fail with the latest being Saudi billionaire investor Prince Alwaleed Bin Talal. With his main argument being that Cryptocurrencies are not regulated.

“It just doesn’t make sense. This thing is not regulated, it’s not under control, it’s not under the supervision of any central bank.”
— Prince Alwaleed Bin Talal

Alwaleed said in an interview on CNBC's "Squawk Box."

Australia would join the likes of China and Russia, the latest to look at regulations. China introduced a ban on Initial Coin Offerings (ICO) and shutdown several exchanges last month while Russia has stated It looks to put regulations in place in the upcoming future.

The bill, if passed will grant extra authorization to the national financial intelligence regulator AUSTRAC to oversee digital currency exchanges. This will make it illegal for any person who is “unregistered” to offer Cryptocurrency exchange services.

“Businesses that trade digital currencies for money, and vice versa, will be required to enroll and register with AUSTRAC”
— Justice Minister Michael Keenan

Justice Minister Michael Keenan explained in August when addressing the latest bill.

All registered persons will also be required to “report threshold transactions and suspicious matters to AUSTRAC, and keep appropriate records.”

Many believe regulation on exchanges could be a positive for Cryptocurrency in general. With it possibly helping to reduce scammers which has given Cryptocurrency a bad name in the past.

Another argument being that a lack of regulation contributes to large corporations from investing in Cryptocurrency with Morgan Stanley, a leading global financial services firm stating, “Governmental acceptance would be required for this to further accelerate, the price of which is regulation.” 

 

 

 

 

 

Modum | Clearpoll | Red Pulse

Modum | Clearpoll | Red Pulse

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