Australia on its way to becoming cryptocurrency continent with strong regulations for digital currency exchange providers. New law has just been implemented by AUSTRAC, Australia’s financial intelligence agency and anti-money laundering and counter-terrorism financing (AML/CTF) regulator. “The new laws cover for the first time regulation of service providers of cryptocurrencies, including bitcoin,” said in the statement.
According to AUSTRAC CEO Nicole Rose “the new laws will strengthen the agency’s compliance and intelligence capabilities” and “controls that can minimise the risk of criminals using them for money laundering, terrorism financing and cybercrime.”
“It’s recognised 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,” Ms. Rose said, ensure that the sector welcomed the law.
The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 requires regulated entities to collect information to establish a customer’s identity, monitor transactional activity, and report to AUSTRAC transactions or activity that is suspicious or involves large amounts of cash over $10,000.
“The information that these businesses will collect and report to AUSTRAC will have an immediate benefit in the fight against serious crime and terrorism financing,” Ms. Rose said.
Digital currency exchange providers who operate in Australia must register with AUSTRAC and meet the Government’s AML/CTF compliance and reporting obligations. The transition period lasts until 14 May 2018.