Australian bitcoin exchanges must be registered with financial regulators

nBankruptcy comment: The Australian Senate has proposed changes to the domestic trading rules of the Bitcoin Exchange, according to the new anti-money laundering and anti-terrorist financing bill, the Bitcoin Exchange must be registered in the Australian Financial Reporting and Analysis Center to provide the corresponding services. But also bear the obligation of reporting suspicious transactions, the transaction amount has also been limited. And made clear the penalties for the illegal acts. But on the one hand, some people think that this move will promote the domestic encrypted currency transactions, but ignore the protection of investors, on the other hand, it will also have an impact on the services of crypto-currency businesses.n
nTranslation: Annie_Xun
Regardless of whether bitcoin users are bullish or not, the global government has decided to try to regulate the way citizens engage in crypto currency transactions. So Australian Bitcoin Exchange customers will see that their service providers value the government agency compliance process very seriously.n

Australian lawmakers revised the rules governing the operation of bitcoin exchanges within their territories. The purpose of the Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2017 is to upgrade the financial regulatory framework in the cryptocurrency era.n
The bill was first introduced by the Australian Senate in August to give the Austrac Australian Transaction Reports and Analysis Center the power to formally regulate Bitcoin exchanges.n
Any crypto-currency trading service that is not registered with Austrac will be considered a violation. Violation of the new rules will be punishable by a minimum two-year sentence of $ 105,000. The maximum penalty is a seven-year sentence, a fine of 420,000 Australian dollars and a fine of 2.1 million Australian dollars.n
Austrac Law Amendmentn

After the financial regulators have registered, the Bitcoin exchange must comply with the same rules as banks and other legal currency businesses.n
Although some may argue that this move gives the Bitcoin Exchange the same status as a traditional financial institution and thus increases its position as a cryptocurrency trader in the country, it does not give customers any new protection or security. At the same time, this will force enterprises to shift their focus from providing the best service to ensuring compliance with the decree.n
Exchanges now need to show that they are actively planning anti-money laundering and anti-terrorist financing risk prediction and resolution mechanisms. According to Australian regulations and regulations, service operators must verify their identity. Report all suspicious activity, international deals, and transactions in excess of $ 10,000 to Austrac. They must also maintain transaction records and customer identity information within seven years.n

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