Australia has started licensing all exchanges in the country in order to regulate the growing cryptocurrency market. According to reports from the country’s regulator, they have already licensed three exchanges since the new regulations were effected on April 3rd. The Australian Transition and Analysis Centre (AUSTRAC) said that all exchanges have a transition period will lapse at the end of May. According to AUSTRAC, the exchanges should have completed the newly sanctioned registration process by the end of that time.
According to AUSTRAC CEO Nicole Rose:
“The new regulations are organized in a way that they will help their business operations from terrorism financing and money laundering. More to that the regulation will also help to strengthen public and consumer confidence in the cryptocurrency sector.”
The program is said to be similar to that in Japan and South Korea, and all exchanges were advised to take advantage of the program instead of fighting it. The crypto industry in the country is said to have welcomed the move which analysts have said will create a good impression of operators while facilitating trust and adoption of the crypto assets.
Inclusive regulation seems to be working very well in Japan since the licensing of exchanges started in April 2017. Even the hack of Coincheck did not shake the market much because the market is well regulated. In fact, Coincheck was recently bought by Monex Group for a $33.5 million last week.
The AUSTRAC CEO believes that the regulation will actually increase data sharing opportunities since the market will operate with more trust. According to her:
“AUSTRAC has actually increased the opportunities to enable financial intelligence and facilitate sharing of information relating to the use of cryptocurrencies like Ethereum and Bitcoin within the industry and even with government partners.”
She concluded by asking all the exchanges to abide by the regulations in order to grow the upcoming sector.