Crypto regulatory authorities in Australia claim that regulations are set to ‘strengthen confidence’ in digital currency trading, reported cointelegraph.com. As of now, three cryptocurrency exchanges have been the license of operations after the launch of new regulations on April 3.
The authorities also said that in order to continue trading remaining exchanges will have to apply for the license before May 14.
The statement was given through a press release on April 11. AUSTRAC, Australian Transaction Reports and Analysis Centre, said that before starting the newly-sanctioned registration process next month all the “digital currency exchanges (DCEs),” have a “transition period.”
Nicole Rose, CEO AUSTRAC, said, “It’s recognized that this reform will help protect their business operations from money laundering and terrorism financing, while regulation will also help strengthen public and consumer confidence in the sector.”
Crypto exchanges operating in Australia have faced a long time battling confusion and baffling regulations landscape. From now on they would be able to benefit from an official programme similar to those adopted in South Korea and Japan.
Crypto optimism in Japan has not been damaged even after the $350 million hack occurred in Coincheck this year in January. Monex Group, an online broker, confirmed a $33.5 million buyout last week.
Rose further added, “AUSTRAC now has increased opportunities to facilitate the sharing of financial intelligence and information relating to the use of digital currencies, such as bitcoin and other cryptocurrencies, with its industry and government partners.”
In a similar report published in bitcoin.com, Blockbid became the third crypto exchange formally authorized by AUSTRAC to operate in Australia.
COO Blockbid, David Sapper, said, “Since its inception Blockbid has always wanted to put customers’ security and peace of mind at the forefront of building a one-for-all platform, allowing our users to trade with confidence. As a registered digital currency exchange in Australia, we are looking forward to opening up our doors worldwide to all traders and investors who want to use a platform that is legitimate and provides asset insurance as well.
He seemed hopeful after accepting the new regulations amidst other exchange being skeptical about the new guidelines. “This is a big step not only for the Australian cryptocurrency space but also for our company as it means that our vision to allow you to trade with confidence has been acknowledged by the Australian government under AML/CTF guidelines,” he added.
Blockbic is ready to launch its beta version on April 16 which will serve a limited number of users. The beta version will not aid in trading real currency until the user and developers get satisfied with its usability.
After getting feedback and incorporating necessary up gradation the phase one of beta launched. It will include bitcoin, bitcoin cash, litecoin, bitcoin gold and ripple with AUD, JPY, USD, and EUR.
The authorities expect other exchanges to accept the new guidelines. With three firms undertaking the new system other exchanges are more prone to comply with the recent developments. It would be interesting to see if AUSTRAC faces any resistance from the remaining exchanges.