The Australian government has taken another step towards adopting regulations for the country’s cryptocurrency industry.
An Australian Senate committee has backed proposed legislation to integrate cryptocurrency platforms and custody providers into the country’s financial services framework.
The Senate Economics Legislation Committee approved the “Digital Assets Framework Bill,” which seeks to modernize crypto oversight with traditional market safeguards to protect consumers.
The new legislation will also establish a licensing and compliance system for cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH).
The regulations also target firms that hold digital assets on behalf of customers, bringing them under existing financial services rules instead of regulating the blockchain infrastructure.
Should the bill become law, companies will have six months to obtain the required authorization and comply with the new crypto framework.
Cryptocurrency exchanges operating in Australia are already required to register with the country’s financial intelligence agency, the Australian Transaction Reports and Analysis Centre.
Exchanges must be legally registered as “digital currency providers” before they can offer trading in Bitcoin, Ethereum, and other crypto to the public.
Bitcoin is currently trading at $73,800 U.S.
