The regulator outlined the necessities that a ‘cryptocurrency‘ business requires to follow in order to comply with both the Australian firms and ASIC Acts, but didn’t cover regulations implemented by other national establishments. Moreover, the guidelines outlined that if a crypto asset is a monetary product, then the issues as well as the firms dealing with it are required to issue an Australian financial services license.
The report conjointly notes that miners would be considered part of the clearing and settlement process in a min. of some instances:
“Where miners and transaction processors are a part of the CS [clearing and settlement] process for tokens that are monetary products Australian laws apply.”
The regulator conjointly added that “entities and their advisers ought to consider all the rights and options of the ICOs [regardless of how it’s named and marketed] in deciding whether or not the crypto asset is a monetary product or involves a financial product.” The report additionally specifies that exchanges managing such assets will require to hold a license also, since the guidelines adds:
“Businesses offering crypto-assets, or providing services linked to crypto assets, ought to undertake acceptable inquiries to satisfy themselves that they’re complying with all relevant Australian laws.”
Moreover, the ASIC conjointly added that KYC [Know Your Client] and AML [Anti Money Laundering] norms apply to crypto assets, as does the Australian Consumer Law, as well as cases when the assets are issued or managed from abroad.
Also in April, Australia’s tax agency named ‘Australian Tax Office’, ‘confirmed‘ that it’ll seek to contact crypto traders in personally regarding tax associated issues as a part of a new data collection scheme.