Eternity Law International News Cryptocurrency in Australia

Cryptocurrency in Australia

Published:
January 29, 2020

Cryptocurrency in Australia is developing every year. There are more and more miners, so the government has come to grips with the issue of regulating this currency. The act that regulates cryptocurrency-related activities throughout Australia is called the Corporations Act.

It was created back in 2001 and is known in the world as the ASIC-based law, which stands for the Australian Securities and Investment Commission. In other words, it is the Australian Securities and Investments Commission.

Description of the registration procedure

Nowadays, cryptocurrency is considered an electronic currency. ASIC, in its speech dated 11/13/2014, clarifies that in the act issued earlier, the cryptocurrency is not classified as financial working capital.

Therefore, previously, it was not required to obtain any permission to work with cryptocurrency in Australia. The act states that when working with the sector in which the exchange for the so-called fiat money is made, you must have a license permit.

If a company uses cryptocurrency as a material investment in the development of a real production industry, it is necessary to clarify whether licensing is necessary or not (taking into account section 5C Corporations Act).

When the fund contains more than 20 people, you must complete full registration with ASIC:

  • issue a Public Company – such a legal form is used for public companies (it contains all the information about the needs for the company’s operation and the need for registration);
  • obtain an Australian financial license (its presence allows the company to carry out currency exchange);
  • collect documents, taking into account all the requirements that can be submitted through the state website online.

The regulator allows the company to issue all documents through the ASIC, both before applying for authorization, and performing these two actions simultaneously.

The documentation for obtaining this license differs from each other based on the activities of the company.

The following funds are distinguished:

  • Managed fund;
  • Exchange trade fund;
  • Investment company (listed investment company).
  • In conclusion, it should be noted that today the funds that deal with cryptocurrency in Australia are successfully flourishing.

However, to register, you still need the help of lawyers, contact Eternity Law International right now!

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