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Topic: [2017-10-21] Bitcoin one step closer to being regulated in Australia under new (Read 272 times)

hero member
Activity: 588
Merit: 500
The way I see is that this coming law would prohibit anybody to sell and buy Bitcoin if the seller is not registered with the government so that peer-to-peer exchange involving fiat cash (I assumed) is not allowed. In exchange for that provision, it would be legal for any exchange to conduct business within the country as long as it has fulfilled all the regulatory legal requirements.

Certainly, this is much better than what China did last month. And I am sure that cryptocurrency players can all live with the legal requirements because what is the most important thing here is to be able to do business and Bitcoin afforded a legal status. This is just the government exercising its regulatory power to protect consumers from possible fraud and problems.

Welcome to the Bitcoin bandwagon, Australia!
Agree iamTom, and let's not fool ourselves, this is a necessary step for Bitcoin to become bigger and adopted by (much) more people in the future.
You were comparing to China by saying it is much better than what they decided to do with ICOs, I would then compare to Japan and say Australia is following a similar path. Now we need to see what actual action is coming off this, for now this is just press talk, but sounds good to me Wink
China was much fast and straight about their decisions towards ICOs and exchangers. Australia is definitely more soft about that, but the law is still just a project and we don't know what is going to be in the final. I only wander about how much fees we will have to pay after exchangers will be obligated to get and pay for license?
full member
Activity: 196
Merit: 109
The way I see is that this coming law would prohibit anybody to sell and buy Bitcoin if the seller is not registered with the government so that peer-to-peer exchange involving fiat cash (I assumed) is not allowed. In exchange for that provision, it would be legal for any exchange to conduct business within the country as long as it has fulfilled all the regulatory legal requirements.

Certainly, this is much better than what China did last month. And I am sure that cryptocurrency players can all live with the legal requirements because what is the most important thing here is to be able to do business and Bitcoin afforded a legal status. This is just the government exercising its regulatory power to protect consumers from possible fraud and problems.

Welcome to the Bitcoin bandwagon, Australia!
Agree iamTom, and let's not fool ourselves, this is a necessary step for Bitcoin to become bigger and adopted by (much) more people in the future.
You were comparing to China by saying it is much better than what they decided to do with ICOs, I would then compare to Japan and say Australia is following a similar path. Now we need to see what actual action is coming off this, for now this is just press talk, but sounds good to me Wink
hero member
Activity: 490
Merit: 501
The way I see is that this coming law would prohibit anybody to sell and buy Bitcoin if the seller is not registered with the government so that peer-to-peer exchange involving fiat cash (I assumed) is not allowed. In exchange for that provision, it would be legal for any exchange to conduct business within the country as long as it has fulfilled all the regulatory legal requirements.

Certainly, this is much better than what China did last month. And I am sure that cryptocurrency players can all live with the legal requirements because what is the most important thing here is to be able to do business and Bitcoin afforded a legal status. This is just the government exercising its regulatory power to protect consumers from possible fraud and problems.

Welcome to the Bitcoin bandwagon, Australia!
hero member
Activity: 821
Merit: 1003
Bitcoin one step closer to being regulated in Australia under new anti-money laundering laws


Bitcoin is one step closer to being regulated in Australia, with Parliament expected to this week vote on a bill to strengthen the nation's anti-money laundering laws.

That was almost a ten-fold surge from last October, when each unit was worth just $803 (or $US630). But even at that lower price, many people thought the digital currency was "over-valued

The proposed laws

If the new laws are passed, the financial intelligence regulator AUSTRAC will be given new powers to police digital currency exchanges — where traders buy and sell Bitcoin, Ethereum and other cryptocurrencies.

These exchanges like Independent Reserve and BTC Markets would need to be registered under the new regime.

It will also become an offence for an "unregistered person" to provide digital currency exchange services.

"Businesses that trade digital currencies for money, and vice versa, will be required to enrol and register with AUSTRAC," Justice Minister Michael Keenan said in a Parliamentary speech about the bill in August.

Mr Keenan said these businesses would need to "establish, implement and maintain an AML/CTF (anti-money laundering and counter-terrorism financing) program".

In addition, they would have to "report threshold transactions and suspicious matters to AUSTRAC, and keep appropriate records".

This is a softer approach compared to China, which banned initial coin offerings (ICOs) last month — a move which led to Bitcoin's value dropping by more than US$1,000 to $US3,226 (on September 14).

Digital currencies and crime

The Australian Criminal Intelligence Commission (ACIC) has been a strong advocate for regulating digital currencies.

"Virtual currencies, such as Bitcoin, are increasingly being used by serious and organised crime groups," ACIC said in its report on Australian organised crime, released in August.

"They are a form of currency that can be sold anonymously online, without reliance on a central bank or financial institution to facilitate transactions."

They can be used on darknet marketplaces like Silk Road 3.0 and Valhalla Marketplace to facilitate the sale and trafficking of illicit drugs, firearms, precursor chemicals and child exploitation materials.

They are also the currency of choice when it comes to cyber attacks.

The hackers behind the Wannacry ransomware attack, which infected nearly 100 countries around the world demanded their ransom be paid with Bitcoin.

That was also the case with the Petya cyber attack in June, which targeted the Cadbury chocolate factory in Tasmania.

But the buying and selling of Bitcoin and similar virtual currencies is currently unregulated in Australia due to a loophole in existing laws.

The loophole is that the term "e-currencies" is defined too specifically in the Anti-Money Laundering and Counter-Terrorism Financing Act.

"E-currencies" are defined as "an internet-based, electronic means of exchange" backed by something physical like a "precious metal" (gold or silver), or "bullion".

This problem was pointed out by the Attorney-General's Department's (AGD) submissions in submissions to the Senate.

In particular, the AGD said this specific definition does not cover Bitcoin. That is because the digital currency is not backed by physical assets at all — but by a "cryptographic algorithm".

full: http://www.abc.net.au/news/2017-10-23/bitcoin-one-step-closer-to-being-regulated-in-australia/9058582
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