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What are the regulations and licensing requirements for cryptocurrency brokerages in Australia?

avatarNigar BagiyevaDec 26, 2021 · 3 years ago1 answers

Can you provide detailed information about the regulations and licensing requirements for cryptocurrency brokerages in Australia? What are the legal obligations and procedures they need to follow?

What are the regulations and licensing requirements for cryptocurrency brokerages in Australia?

1 answers

  • avatarDec 26, 2021 · 3 years ago
    In Australia, cryptocurrency brokerages are subject to regulations and licensing requirements to ensure the protection of consumers and the integrity of the financial system. The Australian Securities and Investments Commission (ASIC) is responsible for overseeing and regulating brokerages. To operate legally, brokerages must obtain an Australian Financial Services (AFS) license from ASIC. This license requires meeting specific criteria, including having adequate financial resources, implementing proper risk management systems, and complying with anti-money laundering and counter-terrorism financing regulations. Additionally, brokerages must follow Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures to verify the identity of their customers and report any suspicious activities. By complying with these regulations, brokerages contribute to a safer and more transparent cryptocurrency trading environment in Australia.