New Cryptocurrency Exchange regulations For Australia
They Take Effect on April 3, 2018
All the major Australian cryptocurrency exchanges currently must follow and abide by the rules to do with anti-money laundering. This will take effect from 3rd April. This is according to the confirmation by the government.
According to the recent information currently which is on the corporation’s website of Australian Transaction Reports and Analysis Center (AUSTRAC), all the major digital currency exchanges must make registration with the required authorities. Additionally, they are bound to commit the identity checking an also reporting procedures which have been set.
This move comes just after the Australian authorities made the attempts to ensure that the remaining loopholes have been sealed in the cryptocurrency exchanges in regard to payment of taxes and also identity management.
However, in the recent days, there has been the backdrop of discontent because of the rising scams, the Australian based tax office last week was involved in asking for the taxpayers input into the manner at which deductions which arise from cryptocurrency profits should be gathered.
As a section of the new security details installment, the exchanges are expected to adhere to the four major principle rules to enable their operation on the board.
- Adoption and the maintenance of AML/CTF program for the identification, mitigation and also money management t laundering and terrorism of the financial risks.
- Identification and verification of the customer identities.
- Making reports to the AUSTRAC suspicion matters and also the various transactions which involve physical currency of $10,000 and more.
- Keeping of the various records for around 7 years.
The grace period which will be six months should be accompanied by the new set regulations and rules. At this time, AUSTRAC is meant to be more lenient on the operators who might fall short of the various requirements.
It then adds,
“A ‘policy principles’ period of six months will be in place from 3 April 2018. During that period, the AUSTRAC CEO can only take enforcement action if a DCE business fails to take ‘reasonable steps’ to comply.”