Australian regulators are reportedly in the process of developing new guidelines that will mandate cryptocurrency exchanges to secure financial services licenses. The licensing stipulations for these exchanges are expected to expand beyond those that currently apply to digital currency exchanges, according to a report by The Australian Financial Review (AFR).
Alan Kirkland, a commissioner at the Australian Securities and Investments Commission (ASIC), stated that these new requirements are deemed essential because the regulatory body believes that the Corporations Act encompasses most significant crypto assets, including Bitcoin (BTC) and Ether (ETH). Kirkland shared the authority’s intentions during the AFR Crypto and Digital Assets summit held in Sydney on September 23.
### Upcoming Regulatory Guidance
Kirkland indicated that ASIC is gearing up to revise the Information Sheet 225 of the Corporations Act to clarify how specific crypto tokens and certain products should be regulated. This update is expected to be released in the coming months, as he mentioned before his appearance at the summit.
*ASIC commissioner Alan Kirkland. Source: AFR*
“ASIC’s position is that many crypto-asset firms operating within the Australian market will likely require a license under existing laws,” Kirkland communicated in a statement to Cointelegraph. While he emphasized ASIC’s commitment to fostering responsible innovation in the cryptocurrency sector, he also expressed concerns about potential consumer risks and market misconduct that need to be addressed through regulatory measures.
“ASIC anticipates releasing updated draft guidance shortly, which will be open for industry feedback,” the Commissioner added.
### Criticism of Regulatory Inaction
The announcement regarding ASIC’s forthcoming guidance coincided with criticism from Senator Andrew Bragg, who condemned Australian regulators for their lack of proactive measures in regulating the crypto marketplace. On September 23, Bragg took to X to share his remarks from the AFR event, contending that Australia has transformed from a crypto pioneer to a crypto laggard over the past two and a half years.
In his address, Bragg noted that Australia was expected to establish a regulatory framework for cryptocurrencies a few years back when Finance Minister Stephen Jones asserted that the Labor Party’s approach would prioritize “safety and transparency.”
The Senator criticized the government for entirely abandoning the 2022 regulatory framework designed for crypto asset secondary service providers (CASSP) after the election. He pointed out that instead of advancing the regulatory agenda, Labor merely re-released a consultation paper after 18 months without much discussion.
*Source: Senator Andrew Bragg*
Bragg predicted that it is unlikely for Australia to see any significant crypto regulations implemented during the current parliamentary term. As previously reported by Cointelegraph, Australia’s Committee on Economics Legislation recommended against passing Bragg’s crypto regulation bill in early September 2024, citing the necessity for further government research on the topic.
The draft bill, introduced in March 2023, offered regulatory guidance on stablecoins, exchange licensing, and custody requirements.
*Magazine: Trump buys burgers with BTC, Arthur Hayes skeptical on rate cut, and more: Hodler’s Digest, Sept. 15 – 21*