Australian regulators are taking steps to tighten regulations on cryptocurrency exchanges by requiring them to obtain financial services licenses. The move comes as the Australian Securities and Investments Commission (ASIC) considers extending licensing requirements beyond those related to digital currency exchanges.

ASIC commissioner Alan Kirkland revealed the authority’s plans at the AFR Crypto and Digital Assets summit in Sydney on Sept. 23. Kirkland emphasized the need for new requirements, citing the regulator’s belief that the Corporations Act already covers most major crypto assets like Bitcoin and Ether.

The ASIC is set to update the Corporations Act’s Information Sheet 225 in November to provide more clarity on how specific crypto tokens and products should be regulated. Kirkland stated that a significant number of crypto asset firms in the Australian market are likely to require a license under the current law, as many widely traded crypto assets are considered financial products.

The updated legislation is expected to be issued by November 2024, signaling a significant shift in the regulatory landscape for cryptocurrency exchanges in Australia. This development underscores the growing importance of regulatory oversight in the rapidly evolving crypto industry.

As the story continues to unfold, further information will be added to provide a comprehensive understanding of the implications of these new regulations on the cryptocurrency market in Australia. Stay tuned for updates on this developing story. #Bitcoin #Cryptocurrencies #Law #Australia #Cryptocurrency Exchange #Regulation.