Registration date for digital currency exchanges looms

Share on facebook
Share on twitter
Share on linkedin
Share on email

Providers of cryptocurrencies are now covered by anti-money laundering and counter-terrorism financing laws.

Australia’s anti-money laundering regulator Austrac has implemented new rules, which mean that digital currency exchanges with a business located in Australia must register with Austrac and meet AML/CTF compliance and reporting obligations. The deadline for registration is May 14.

itnews reported that exchanges that have registered include NCX, ACX.io, Independent Reserve and CoinSpot

Austrac chief executive Nicole Rose says the new laws had generally been welcomed by the industry. “It’s recognised that this reform will help protect their business operations from money laundering and terrorism financing,” Rose says.

Providers will have to report suspicious matters and they will have to report transactions that involve cash amounts of more than $10,000.

They will have to keep records relating to customer identification, transactions and their AML/CTF program.

To complete their registration businesses will have to obtain a history check from the police. All key staff members will have to be registered.

For the purposes of the new rules, digital currency has been broadly defined as a digital representation of value that, among other things, is not issued by a government, is interchangeable with money and is generally available to members of the public without restriction on its use.

It is uncertain what impact regulation will have. Some commentators believe digital currencies are widely used by money launderers and cyber criminals, and regulation will help take the bad guys out of the market, dampening overall demand.

Others believe that by giving the market greater legitimacy, new users will be attracted to digital exchanges.

Independent Reserve director Lasanka Perera told ABC News that regulation would remove some of the stigma that links cryptocurrencies with crime.

“These laws will be good for the industry. It will give more confidence to investors, consumers and businesses to enter the market,” she says.

Nicolas Steiger, the co-lead of FinTech Australia’s blockchain working group, says it is good move: “To enable further growth of the digital currency industry in Australia, this is a milestone achievement that will allow for an equal regulatory playing field and should only solidify consumer trust in this new industry.”

Share on facebook
Share on twitter
Share on linkedin
Share on email