New Bill Seeks to Regulate Cryptocurrency Exchanges in Australia

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A bill, which seeks to establish a licensing regime for Australian cryptocurrency exchanges, was introduced by Liberal Senator Andrew Bragg on March 29. 

This news comes after US regulators filed legal action against two of the world’s largest cryptocurrency exchanges, Binance and Coinbase. The bear market has also seen digital asset prices depressed across the board, with many investors citing regulatory uncertainty as a significant factor in keeping investment low.

The move also further demonstrates the growing focus on regulation in the crypto sector, with many industry figures calling for less ambiguity and higher compliance standards to attract more investors.

“It’s critical we get this done now because businesses aren’t just going to wait around,” Senator Bragg said.

“And rather than regulate through stealth which is what seems like the US is doing, we want to do it properly through the parliament.”

The crypto market is still reeling from news of the US Commodity Futures Trading Commission’s (CFTC) lawsuit against Binance and its founder Changpeng “CZ” Zhao.

The lawsuit caused bitcoin prices to slump 5 per cent last week as investors worry about the ramifications of the charges. Should the CFTC’s claims be proven, it could significantly impact the crypto market as a whole.

In April 2021, Coinbase made history when it became the first major cryptocurrency exchange to list on the Nasdaq. Since then, US regulators have increasingly targeted the crypto industry with investigations and enforcement actions.

Despite this, Coinbase has stated that it remains confident of its legal position and even welcomes any legal processes to provide further clarity about its position.

Only time will tell how the bill fares in the Australian Parliament, but it is clear that if passed, it would be a significant milestone for Australia’s cryptocurrency industry and could have repercussions across the international market.

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