What happened?
Australia’s draft legislation proposes to penalize digital asset platforms which contravene the new rules. Penalties could reach 10% of their annual turnover, A$16.5m (US$10.9m) or three times the profits obtained from unlawful activities – whichever is largest.
Who does this affect?
This affects all exchanges and operators in Australia who ought to secure an Australian Financial Services Licence under the new proposal. Smaller platforms which hold less than A$5,000 per customer and process under A$10m in annual transactions are exempt from these obligations.
Why does this matter?
The draft legislation significant as it marks an effort by the government to regulate the digital assets industry without stifling innovation. This will likely contribute to the wider global shift towards increased regulation of cryptocurrency exchanges, impacting the market dynamics and investor sentiments