"Maybe this is good for everyone, but why do some people not like it?"
Seeking to protect consumers and encourage innovation, the Australian government that plans to regulate the cryptocurrency market has revealed that exchanges will need to obtain a financial services license from the Australian Securities and Investments Commission (ASIC).
The Australian Treasury which published a consultation paper titled “Regulating digital asset platforms” on 16 October 2023 has outlined a proposed regulatory framework for crypto exchanges.
So here it can be seen that the regulation will target crypto exchanges and service providers, but it still recognizes the existence of digital assets such as payment tokens, utilities, securities including stablecoins.
However, some of those digital assets may not fall under the definition of financial products according to the Companies Act, therefore the paper proposes to create token mapping by the end of 2023.
This is because the matter can not only classify different types of crypto but also determine whether digital assets should be regulated as financial products or not.
A consultation paper on crypto exchanges operating in Australia has received mixed reactions with some seeing it as a positive move that could bring clarity and certainty to the market while others criticized it as an aggressive approach.
According to Kraken Australia Director Jonathon Miller, Australia has lagged behind other countries in implementing a crypto framework, so he hopes to work hand in hand with the government to ensure future innovation of digital assets is not neglected.
Meanwhile, the general counsel of the Australian crypto exchange Swyftx named Adam Percy supported the proposal following the assumption that crypto users can access blockchain technology while being protected.
