- ASIC has mandated that cryptocurrency exchanges in Australia must obtain financial licenses by November 2024
- The Corporations Act will be expanded to classify many crypto assets as financial products under Australian law
- ASIC’s Commissioner highlighted the need for enhanced regulation to protect consumers and ensure market stability
The Australian Securities and Investments Commission (ASIC) is introducing new requirements for crypto exchanges, compelling them to secure financial licenses by late 2024. These measures, first reported by Australian Financial Review, aim to bring more digital assets under regulatory oversight. ASIC’s Commissioner noted that many crypto assets already qualify as financial products, necessitating tighter controls to safeguard the growing market.
Strengthening Regulations
The need for Australia’s cryptocurrency exchanges to acquire financial services licenses by November 2024 is an important regulatory shift for the country, with the expansion under the Corporations Act including guidance on how crypto assets should be classified and treated.
ASIC Commissioner Alan Kirkland shared these developments during a recent summit, emphasizing that “a significant number of crypto asset firms are likely to need a license under the current law.”
The move aligns with broader efforts to reinforce the country’s financial infrastructure and ensure that the digital asset sector adheres to higher regulatory standards. Kirkland further noted, “We believe many widely traded crypto assets qualify as financial products, which requires clearer regulation.”
Broader Impact on Financial Markets
This regulatory change follows the passage of the Treasury Laws Amendment Bill 2024, enhancing ASIC’s powers to oversee financial markets. Key entities such as financial market operators and clearinghouses will also face stricter oversight under these reforms, further stabilizing Australia’s capital markets.
With these developments, ASIC aims to provide a safer and more transparent environment for investors while acknowledging the increasing role of cryptocurrencies in modern finance.
ASIC recently announced that its National Anti-scam Centre took down 615 crypto scams in its first year of operation, scams which led to the loss of $1.3 billion to victims.
