{"id":25652,"date":"2024-12-04T10:06:24","date_gmt":"2024-12-04T10:06:24","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=25652"},"modified":"2024-12-04T10:06:24","modified_gmt":"2024-12-04T10:06:24","slug":"australias-corporate-regulator-proposes-costly-licensing-for-crypto-firms","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=25652","title":{"rendered":"Australia\u2019s Corporate Regulator Proposes Costly Licensing For Crypto Firms"},"content":{"rendered":"

Australia\u2019s Securities and Investment Commission (ASIC) has unveiled a proposal to impose stringent licensing requirements on crypto firms.<\/span><\/p>\n

The move, outlined in a consultation <\/span>paper released on 4 December 2024<\/span><\/a>, aims to classify many digital assets as financial products, mandating firms handling them to obtain appropriate licenses.<\/span><\/p>\n

The proposed guidance signals a stricter stance on compliance within the crypto industry, described as a \u201cwake-up call\u201d by Kate Cooper, CEO of Standard Chartered-backed Zodia Custody.<\/span><\/p>\n

<\/span><\/p>\n


\n
\n
\n
\n <\/span>
\n <\/span>
\n <\/span><\/span><\/span><\/span><\/p>\n


\n <\/span>
\n <\/span>
\n
\n <\/span>
\n <\/span><\/p>\n


\n
\n <\/p>\n


\n
\n
\n
\n <\/span>
\n <\/span>
\n <\/span>
\n <\/span>
\n
\n Price<\/span>
\n
\n <\/span>
\n
\n <\/span>
\n <\/span>
\n <\/span>
\n <\/span>
\n
\n
\n Trading volume in 24h<\/span><\/span><\/span><\/span><\/span><\/p>\n


\n <\/span>
\n <!–
\n ?<\/span>
\n <\/span> –>
\n
\n
\n Last 7d price movement<\/span>
\n <\/span>
\n <\/span><\/p>\n


\n
\n Buy Now! <\/a>
\n <\/span> <\/p>\n

<\/p>\n


\n <\/p>\n

EXPLORE:\u00a0<\/span>Australia Approves First Spot Bitcoin ETF, Following APACs Like Thailand, Hong Kong<\/span><\/a><\/strong><\/p>\n

Crypto Exchanges Will Need More Licenses<\/span><\/h2>\n

Under current Australian laws, businesses offering financial services or dealing in financial products must secure an Australian Financial Services License (AFSL). Additionally, platforms facilitating the trading of these products may require an Australian Market License. <\/span><\/p>\n

The new rules would extend these requirements to crypto exchanges and many other digital asset firms. Industry experts have expressed concerns about the financial burden these regulations could impose, particularly on smaller firms. <\/span><\/p>\n

Liam Hennessy, a partner at Clyde & Co law firm and adjunct professor at the University of Sydney, warned that while larger companies might absorb the costs, smaller startups could struggle.<\/span><\/p>\n

Joni Pirovich, a crypto lawyer, echoed this sentiment on LinkedIn, noting that the guidance could make launching a crypto business in Australia as costly, if not more, than doing so offshore. <\/span><\/p>\n

\u201cAustralian innovators looking to launch may now consider moving their operations overseas,\u201d she wrote.<\/span><\/p>\n

INSIGHT: Crypto compliance “no longer optional” under Australia\u2019s new draft guidelines<\/p>\n

Sweeping proposed changes would force most crypto firms in Australia to obtain financial licensing, which some worry could drive innovators offshore. pic.twitter.com\/xzXRlUVCOV<\/a><\/p>\n

\u2014 Verma (@CoinCipher3) December 4, 2024<\/a><\/p>\n\n

Block Earner co-founder Charlie Karaboga, whose firm was previously sued by ASIC for offering an unlicensed crypto-yield product, shared his concerns about the financial requirements. <\/span><\/p>\n

Karaboga explained that ASIC\u2019s expectations, including holding millions of dollars in reserves, could stifle startups like his.<\/span><\/p>\n

ASIC\u2019s proposal includes an expanded definition of financial products to cover stablecoins, staking services, exchange tokens, and wrapped tokens. However, Bitcoin, Ether, gaming-related NFTs, and <\/span>memecoins<\/span> might escape these classifications, offering some relief to the industry.<\/span><\/p>\n

Meanwhile, ASIC has invited feedback on the proposed updates, with submissions open until Feb. 28, 2025. A finalized version of the guidance is expected by mid-2025.<\/span><\/p>\n

EXPLORE: <\/span>Buying and Using Bitcoin Anonymously \/ Without ID<\/span><\/a><\/strong><\/p>\n

Australia Lost $122M To Crypto Scams In 12 <\/span>Months<\/span><\/h2>\n

Australians fell victim to <\/span>crypto scams totaling 180 million Australian dollars ($122 million)<\/span><\/a> in 12 months. According to\u00a0the Australian Federal Police (AFP) report, the majority of victims are under the age of 50.<\/span><\/p>\n

In an August report, the AFP revealed that a staggering\u00a0<\/span>$382 million AUD<\/span>\u00a0($269 million) had\u00a0been lost\u00a0to various investment scams over the past year. Notably, 47% of these losses were linked to cryptocurrency-related fraud.<\/span><\/p>\n

As reported, Australia\u2019s\u00a0<\/span>financial markets conduct regulator<\/span> (ASIC) has\u00a0<\/span>removed over 600 crypto scams<\/span><\/a>\u00a0over the past 12 months. The regulator also helped take down 5530 fake investment platform scams, 1065 phishing scam hyperlinks, and 615 crypto investment scams.<\/span><\/p>\n

In March,\u00a0Australia\u2019s\u00a0prudential regulator instructed banks to report their exposures to crypto firms and startups. This command followed the collapse of Silicon Valley Bank.<\/span><\/p>\n

EXPLORE:\u00a0<\/span>Next 1000x Crypto \u2013 18 Coins That Could 1000x in 2024<\/span><\/a><\/strong><\/p>\n

The post Australia\u2019s Corporate Regulator Proposes Costly Licensing For Crypto Firms<\/a> appeared first on 99Bitcoins<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

Australia\u2019s Securities and Investment Commission (ASIC) has unveiled a proposal to impose stringent licensing requirements on crypto firms. The move, outlined in a consultation paper released on 4 December 2024, aims to classify many digital assets as financial products, mandating firms handling them to obtain appropriate licenses. The proposed guidance signals a stricter stance on […]<\/p>\n","protected":false},"author":0,"featured_media":25653,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-25652","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/25652"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=25652"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/25652\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/25653"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=25652"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=25652"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=25652"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}