Cryptocurrency exchange regulation in Australia

Cryptocurrency regulation in Australia has come a long way in recent years, and since we first mentioned it here on our website. Among other recent changes, cryptocurrency exchanges can now be licensed “Down Under”, but under the name Digital Currency Exchanges, a type of Digital Currency Business per the classification of the Australian regulator AUSTRAC.

The registration with AUSTRAC must be complete before any digital currency exchange services are being offered, as it is against the law to provide these services in the country without proper registration with the regulator.

Porat Group has already assisted some of our clients obtain their licenses in Australia and is therefore well positioned to provide guidance and counsel for anyone interested in this regulatory process.

Important to know about the AUSTRAC Digital Currency Exchange license

In order to be eligible for the license, a company must be registered in Australia and then with AUSTRAC. The business must additionally meet all AML/CTF compliance and reporting obligations set out by the Australian government. The obligations include identifying, mitigating and managing risks related to money laundering and terrorist funding and report any suspicious activities identified to AUSTRAC, as well as keeping all information related to the company up to date and renewing the registration every 3 years.

Information required in order to apply for the license

The following information about the business and its key personnel is required by AUSTRAC in order for them to process an application for the digital currency exchange license:

• What services the business provides;
• The company structure of the business in question;
• Contact details for the business;
• Names and contact details of the key personnel of the business, for example directors and officeholders;
• Financial statements (for the most recent financial year);
• Registration details for other countries, in cases where the business is also registered in another country;
• Criminal records and police documentation (such as a National Police Certificate) related to the business and its key personnel, no older than 6 months old at the time of application;
• Information about additional and existing accounts with AUSTRAC, when applicable. (New businesses can be added to the same account)

Upon reviewing the application AUSTRAC may contact the applicant and request additional information as needed.

If this sounds suitable for your business

If you believe an AUSTRAC digital currency exchange license is a good option for your regulatory needs we recommend working with a professional legal and business consultant, such as Porat Group, in order to obtain it.
Porat Group already has experience with assisting and doing the leg work for clients who needed this license in the past, and can therefore provide you with everything you need in order to facilitate the process.

If you are interested in comparing the AUSTRAC license to other similar licenses in other jurisdictions worldwide we also provide consultations and comparisons on the matter, as well as information about partners, such as banks and payment providers to work with in Australia, if needed.

Contact us in order to get the process or comparison started today, or read more about the other services we provide for cryptocurrency businesses here.