Thursday, 13 December 2018

Australian Cryptocurrency Exchange Regulations Kick in

Australian cryptocurrency exchange regulations have been put into effect yesterday. Such move appears in times when Australian authorities try to address the remaining issues in the cryptocurrency market, including the matters of taxation and identity management.

Australian digital currency exchanges have to follow the new anti-money laundering (AML) rules starting from 3 April, according to the official press release from the Australian Transaction Reports and Analysis Centre (AUSTRAC).


Australian Cryptocurrency Exchange Regulations Kick in

As per the fresh info published on the AUSTRAC website, now “digital currency exchanges” must register with the authorities. They also need to commit to a number of reporting and identity checking procedures.

Such move appears in times when Australian authorities try to address the remaining issues in the cryptocurrency market, including the matters of taxation and identity management. In fact, addressing the sharp increase in scams, the Australian Taxation Office has asked for the commentary from taxpayers about how deductions that arise from cryptocurrency profits should be gathered.


Four Key Rules for Crypto Exchanges

Following on this, as part of the security system turnaround, the exchanges now must abide by the four principal rules in order to be able to operate in the market:

-adopting and maintaining an AML/CTF program to identify, mitigate and manage money laundering and terrorism financing risks

-identifying and verifying the identities of their customers

-reporting to AUSTRAC suspicious matters, and transactions involving physical currency of $10,000 or more

-keeping certain records for seven years.

There is also a six-month grace period that comes along with the new regulations. During this period, AUSTRAC will be more lenient on operations of those operators, who still did not comply with all the requirements.

The official press release 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.”

source: atozforex.com 
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