Whether or not bitcoin users think it is a good idea, governments all about the world are determined to try and regulate how citizens trade their cryptocurrency. Due to this, Australian bitcoin reciprocations’ clients should now expect their service providers to focus profuse on compliance with bureaucracy.
Also read: South Korean Pecuniary Regulators Ban Bitcoin Futures Trading
Australian lawmakers have established new legislation pertaining to the operation of bitcoin exchanges in the land down under. The “Anti-Money Legalize honouring and Counter-Terrorism Financing Amendment Bill 2017” is meant to update Australia’s regulatory monetary framework for the cryptocurrency age.
First introduced back in August by the Senate, the pecker gives the Australian Transaction Reports and Analysis Centre (Austrac) the power to officially organize bitcoin trading venues. From now on, all the exchanges in the country must be scheduled with the government’s financial intelligence agency to operate legally.
Contribution cryptocurrency exchange services without being registered with Austrac is now take into accounted a criminal offense. Failure to comply with the new law carries a minimum price of two years in prison and AUD 105,000. The maximum penalty for not registering with the medium can reach seven years in prison and AUD 420,000 for individuals as well as an AUD 2.1 million admirable for a company.
Ramification of Austrac Registration
By having to register with the Australian direction’s financial intelligence agency bitcoin exchanges will have to root for regulations similar to banks and other fiat cash businesses.
While one effect argue that this move gives bitcoin exchanges the after all is said standing as established financial institutions and thus elevates the status of cryptocurrency custom in Australia, it doesn’t seem to offer any new protection or security for clients. At the anyway time this can force businesses to shift their focus from oblation the best service to making sure they follow the government’s instructions.
Exchanges now need to show they are actively pursuing plans to chance and resolve any money laundering and terrorism financing risks. According to the AML/KYC usages in Australia, service operators must verify the identities of their guys. They need to report all suspicious activity, international transactions, and records that exceed AUD 10,000, to Austrac. They are also required to retain some records of transactions and customer identification for a seven years spell.
Are the new regulations good or bad for Australian bitcoin users? Tell us what you have in mind in the comments section below.
Images courtesy of Shutterstock.
Do you like to probe and read about Bitcoin technology? Check out Bitcoin.com’s Wiki send for for an in-depth look at Bitcoin’s innovative technology and interesting history.