The Australian government is advancing a proposal that, if implemented, would require crypto exchanges to apply for a license from the country’s financial services and financial markets regulator in order to operate.
Under the proposal, a digital asset intermediary must obtain an Australian financial services license granted by the Australian Securities and Investments Commission (ASIC) to “issue and trade digital asset facilities.”
The proposal states that digital asset intermediaries holding assets worth up to $5 million AUD ($3.18 million) would be exempt from Australia’s financial services licensing requirements.
The proposal also includes crypto brokers and other dealers in the intended licensing regime for Australia.
“A person who deals in, or arranges for another person to use, a digital asset facility in the ordinary course of a business that is not primarily a financial services provider is not required to hold an Australian financial services license if:
(i) They trade in a digital asset facility provided by a licensed platform provider; And
(ii) the trading does not involve digital assets that are financial products.”
Regarding the various forms of market misconduct, such as “market manipulation, false trading and market manipulation, wash sales and fictitious transactions,” the proposal puts the burden of combating the vices on crypto exchanges.
According to the proposal, crypto exchanges will be required to have and apply “listing criteria for any product made available for transactional functions on their platform” and ensure that digital asset transactions take place only after sufficient information has been provided about the specific token or tokens.
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