Australia is planning to introduce new rules to oversee companies involved with digital assets.
A draft law has been proposed to bring crypto platforms under existing financial services regulations.
Assistant Treasurer Daniel Mulino spoke about the proposed law during a summit hosted by the Digital Economy Council of Australia. According to Mulino, the law is designed to support responsible businesses while preventing harmful practices.
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The draft legislation introduces two categories under the Corporations Act: Digital Asset Platforms and Tokenized Custody Platforms.
Companies would have to obtain a license to operate, follow standards for holding and settling assets, manage any conflicts of interest, and provide a system for handling complaints.
Platforms that fail to meet these standards may face penalties, up to 10% of their annual revenue. However, smaller services dealing with under $5,000 per customer and less than $10 million in yearly transactions would be excluded from these requirements.
The bill also includes guidance for wrapped tokens, staking, and public infrastructure used in crypto systems. These areas have not fit well into older laws made for traditional financial companies.
To help regulators keep up with fast-changing developments in digital assets, the law would include tools that allow for adjustments as needed. Mulino noted that strict, fixed rules might leave gaps or slow innovation, so flexibility is important.
Recently, the US Securities and Exchange Commission (SEC) proposed a new policy, known as an “innovation exemption”. What did SEC Chair Paul Atkins say about it? Read the full story.
