Australia’s financial regulator is pushing to expand licensing requirements for crypto firms beyond exchanges as it seeks to bring more companies under the country’s corporations law.
According to a report by the Australian Financial Review, the Australian Securities and Investments Commission (ASIC) plans to update its guidelines, known as “Information Paper 225,” by November. ASIC Commissioner Alan Kirkland indicated that the update will clarify how specific crypto tokens or products should be regulated.
Kirkland said that ASIC views most major crypto assets as falling within the scope of the Corporations Act, signaling a broader regulatory push.
This move follows a proposal from the Australian Treasury last year that would require crypto exchanges holding a certain volume of assets to obtain an Australian Financial Services Licence. Although an exposure draft of the bill was expected this year, its timeline remains unclear, with uncertainty about whether it will be introduced before next year’s federal election.
Australian authorities have concern over the risks associated with cryptocurrency. The Treasury pointed to the failures and vulnerabilities of crypto platforms as increasing the urgency for regulation to protect consumers.
ASIC has also been active in cracking down on scams, reporting that it had taken down over 7,300 fraudulent websites since July 2023, with 615 linked to cryptocurrency. In August, the Australian Competition and Consumer Commission revealed that over half of crypto-related ads on Facebook were either scams or in violation of Meta’s policies.
The crackdown comes in response to alarming figures from the Australian Competition and Consumer Commission (ACCC), which reported that investment scams resulted in nearly $1.3 billion in losses for Australians in 2023.
ASIC highlighted the recent takedown of a major crypto scam website, Dexa Trade Markets, which falsely claimed international regulation, billions in trading volume, and millions of investors. The regulator noted that the site was taken down just an hour after being reported to the takedown provider.
Interestingly, ASIC filed last month a lawsuit against the Australian Securities Exchange (ASX) accusing the exchange of making misleading and deceptive statements regarding its now-shelved blockchain-based project to upgrade its trading systems.
