Eternity Law International News Regulation of cryptocurrencies in Australia

Regulation of cryptocurrencies in Australia

Published:
January 29, 2020

On April 3 of this year, on the official website of AUSTRAC (Australian Transaction Reporting and Analytical Center), information appeared about amending the Anti-Money Laundering (AML) and Counter-Terrorism Financing Act (CTFA) rules.  It changes the functioning of cryptocurrency exchanges in the country.

According to the innovations, the exchange must comply with the requirements, including:

  • obligatory registration with the agency;
  • implementation of the Counter-Terrorism Financing Act and Anti-Money Laundering policy;
  • verification and confirmation of clients;
  • reporting of questionable activities;
  • transmission of a report on transactions over ten thousand Australian dollars;
  • data on the activities of the exchange is stored for at least seven years.

It is worth noting that digital currency exchanges that have not been registered are fined and criminally liable, since they function illegally.

Change in documentation

Already operating cryptocurrency exchanges are allowed to submit documents until May 14, since registration takes time. Until that date, they can carry out their activities according to the old rules.

In addition, at the end of 2017, the state authorities supported a bill on the compulsory licensing of cryptocurrency exchanges. This step, according to the government, should contribute to the fight against the illegal use of digital money.

The powers to control and regulate the functioning of cryptocurrency exchanges were transferred to AUSTRAC.

Recall that in 2014, Australia enacted a law that recognizes cryptocurrency as a commodity. Thus, citizens of the state, paying with digital currencies or buying them, had to pay the Goods and Services Tax (GST).

This caused a wave of public outrage, so a new law was considered to cancel the payment of GST, which will take effect from June 2018. It should also be noted that from June 1, cryptocurrencies in Australia will be equated to foreign currencies. These innovations will resolve the issue of double taxation.

To conduct our business legally, we strongly recommend registering your cryptocurrency exchange.

Eternity Law International will help to do this in accordance with the new rules in Australia. You just need to contact the company’s specialists in any most convenient way and discuss all questions.

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