The Australian Department of Treasury has indicated that it would continue to take input on the draft bill through the month of December.
According to a consultation document that was issued by the Australian Treasury on Monday, Australia intends to submit a draft law that addresses the licensing and custody standards of crypto service providers by the year 2024.
Under the new rules, crypto exchanges will need an Australian financial services license if any one customer has ever owned more than AU$1,500 ($946) or if the platform’s total assets have ever been more than AU$5 million ($3.15 million).
“As Kraken Australia’s MD Jonathon Miller put it, [this] approach gives enough possibilities for the legislation to neglect the peculiarities of the technology (for example, unique services like NFTs). I believe we can work together with the government to ensure that the advantages of future crypto developments that don’t fit neatly into the traditional ‘financial services’ box aren’t snuffed out.”
After the new regulation is enacted, cryptocurrency exchanges will have a period of one year during which they may gain licenses and bring themselves into compliance with the new guidelines.
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