Australia is changing the rules of regulation of cryptocurrency exchanges. The updates take effect today

Australia is changing the rules of regulation of cryptocurrency exchanges. The updates take effect today

Today, cryptocurrency exchange Australia needs to follow new rules aimed at combating money laundering and the financing of terrorism ( AML/CTF).

The Australian reporting and analysis centre transactions (AUSTRAC) has just published on its website new commitments as of April 3.

Since April 3, 2018 the exchange must comply with the new criteria, which include: registration in the Agency

  • the adoption and implementation of AML/CTF
  • verification of users
  • reporting of any suspicious activity on the exchange and transactions using currency in the amount of 10,000 Australian dollars (us $ 7 700. USA) and more.

Data should be stored by the exchange within seven years.

Against unregistered cryptocurrency exchanges introduced fines and criminal liability for illegal activity.

Given that consideration of the application for registration of cryptocurrency exchanges takes time, the agreement will allow existing platforms to continue to provide their services, however, they must complete the registration process by may 14.

In order to combat the illegal use of crypto-currencies, the Australian Senate approved a bill on compulsory licensing of cryptocurrency exchanges in the beginning of December 2017. The bill also provided Austrac full control over the cryptocurrency exchanges.

The second is important for cryptocurrency, the law will take effect in July 2018. The need for its adoption arose from the previous act of 2014, which considered the cryptocurrency as a commodity and ordered the Australians to pay tax on goods and services when they buy or pay with cryptocurrency. It immediately drew criticism from the defenders of technology and activists. Then the Australian government has promised to resolve this issue.

2018 Australians will no longer have to pay tax on the goods and services tax (GST, the equivalent of VAT) when buying and selling cryptocurrencies – the government has approved a bill that solves the problem of “double taxation” in the country.

According to the new law, from July 1, 2018 cryptocurrencies will be classified when calculating the GST is similar to foreign currencies.

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