A lot of things are changing in Australia. This is especially true when it comes to cryptocurrency. A new law has been introduced to bring additional regulation to this industry. Service providers need to adhere to the new guidelines introduced by the Australian Transaction Reports and Analysis Centre (AUSTRAC). It is the first time such regulations have been introduced to this industry.
AUSTRAC and Cryptocurrency
In a way, it is not surprising AUSTRAC introduced additional cryptocurrency regulations. More specifically, the institution has kept a close eye on this booming industry. Rather than try to oppose it, they seem to bring more legitimacy to cryptocurrencies. Introducing additional guidelines for providers and exchanges will help achieve that goal.
All digital currency exchanges providers need to register with AUSTRAC. This measure is quite similar to how Japan’s FSA approaches the cryptocurrency industry right now. Anyone not registered with the organization will be in violation of this new regulation. Additionally, companies have to meet governmental AML and CTF (anti-money laundering and counter-terrorism financing) compliance. That also includes reporting strange activity taking place on their respective platforms.
These new laws are not designed to prevent cryptocurrency from succeeding. In fact, AUSTRAC aims to achieve the completely opposite goal. They want to strengthen compliance in this industry and bring criminal activity to an end once and for all. As of right now, the connection between cryptocurrency and crime still remains rather apparent.
The Future of Bitcoin in Australia
While this is the first type of regulatory effort by AUSTRAC, it may not be the last. It is all part of an ongoing reform to help protect digital currency exchanges from money laundering. Moreover, the agency seeks to gain a better understanding of how Bitcoin and altcoins are used in Australia.
These developments come at a critical time for the industry as well. Various countries are cracking down on Bitcoin and altcoins as of right now. This has become rather apparent in India and China, among other regions. Australia is positioning itself as an open-minded country when it comes to cryptocurrencies. It is also one of the few countries with proper taxation guidelines for digital assets.
Any information reported to AUSTRAC will directly benefit the industry. Cryptocurrencies can be a valuable ally to end the fight against financial crime altogether. However, this can only work when service providers adhere to the new guidelines as soon as they are introduced. For local exchanges, these new requirements should not disrupt their existing business model in a negative manner.
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