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Australia drafts law to tighten oversight of crypto exchanges

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“`json
{
“title”: “Australia Proposes Landmark Crypto Exchange Legislation for Enhanced Regulatory Oversight”,
“content”: “The Australian government has unveiled comprehensive draft legislation aimed at establishing a robust regulatory framework for cryptocurrency exchanges operating within its jurisdiction. The proposed measures would subject digital asset service providers to licensing requirements and operational standards equivalent to those governing traditional financial services institutions.\n\nUnder the new regulatory approach, cryptocurrency exchanges would need to obtain an Australian Financial Services License to legally operate in the country. This licensing regime mandates strict compliance with anti-money laundering protocols, consumer protection standards, and financial reporting obligations. The legislation specifically targets platforms holding more than AUD $1,500 of any single client’s assets or AUD $5 million in total assets across all clients.\n\nTreasury officials emphasized that the framework aims to balance innovation with investor protection, creating a safer environment for cryptocurrency participation while maintaining market integrity. The proposed rules would require exchanges to implement sophisticated custody solutions, transparent fee structures, and comprehensive dispute resolution mechanisms.\n\nIndustry stakeholders have been invited to provide feedback on the draft legislation during a consultation period running through December 2023. If enacted, cryptocurrency exchanges would have a 12-month transition period to achieve full compliance with the new requirements. This regulatory development positions Australia alongside other major economies establishing formal oversight mechanisms for digital asset markets.”,
“tags”: [“cryptocurrency regulation”, “Australian crypto exchanges”, “financial services licensing”, “digital asset compliance”, “crypto market oversight”]
}
“`

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