The Australian has announced that all cryptocurrency exchanges in the country will start abiding to a set of new anti-money laundering (AML) rules from April 3.
According to new information, which is now available on the Australian Transaction Reports and Analysis Centre (AUSTRAC)’s website, ‘digital currency exchanges’ will now be required to register with authorities. Additionally, they will be required to commit to several checking and reporting procedures.
The government introduced these measures in a move to seal any loopholes in the digital currency industry regarding management of identity and taxation. Against the backdrop of a lot of discontent caused by the rising cases of scams, the Australian Taxation Office recently asked taxpayers to submit their input in deciding how tax deductions from cryptocurrency profits should be collected.
As part of the industry security reorganizations, exchanges will now be required to follow four main rules so as to operate above board. They will be required to adopt and maintain an AML/CTF program used in identifying, mitigating and managing terrorism financing risks and money laundering. They will also be required to correctly identify and verify the identities of all their clients. All cryptocurrency exchanges will be required to report to AUSTRAC all suspicious matters or any transactions that involve physical money amounting to $10,000 and above. Finally, the exchanges will be required to maintain some records for a period of seven years.
The AUSTRAC has issued a grace period of six months to accompany the new regulations. During the grace period, the AUSTRAC will be lenient and accommodative to operators who may fall short of the laid down requirements.
According to Ryan Taylor, the CEO of Dash Core Group, what the Australian government is implementing is somehow similar to what is being done in other countries. He adds that the regulations being introduced are similar to the AML/KYC rules that are being introduced in other markets like the U.S. Taylor says that the positive aspect with the regulations launched by the Australian government is that they offer increased regulatory certainty but specifying different regulatory bodies and the nature of cryptocurrency transactions that they will be in charge of.