Australia Mandates Financial Services Licenses for Crypto Exchanges

Australia is tightening its regulatory grip on the cryptocurrency sector, requiring exchanges to obtain financial services licenses under new legislation. The move targets approximately 400 platforms currently registered with the Australian Transaction Reports and Analysis Centre, though many remain inactive. Existing rules only mandated anti-money laundering and know-your-customer policies.

Assistant Treasurer Daniel Mulino framed the changes as a balancing act—supporting industry growth while mitigating investor risks. "It is about legitimising the good actors and shutting out the bad," he stated at a digital assets summit. The Australian Securities and Investments Commission will oversee license issuance, with stringent requirements for operational integrity.

Domestic exchanges like BTC Markets and Independent Reserve have publicly endorsed the framework. The regulations specifically exempt smaller platforms handling under $5,000 per customer, focusing scrutiny on larger operators.