Bit Trade joins the Australian certification party
AUSTRAC regulation is starting to gain momentum with Bit Trade joining in.
On the back of AUSTRAC's new regulations, which require digital currency exchange providers to register online, there have been several exchanges jump straight to registration, ensuring they can keep operating without the threat of "enforcement action".
The most recent exchange to join the AUSTRAC party is Bit Trade, which claims to be Australia’s longest running cryptocurrency trading platform.
Jonathon Miller Bit Trade CEO and Managing Director said, “As one of the first cryptocurrency exchanges in Australia to introduce ‘Know Your Customer’ protocols, we welcome this increased regulation of the cryptocurrency market. It is a significant step forward for our industry and provides a robust framework for operation for all players.”
The new rules, which have been broadly accepted by exchange operators, require that exchanges adopt and maintain a working anti-money-laundering and counter-terrorism funding (AML/CTF) program as well as be able to identify and verify the activities of their customers.
In effect, the new rules mean exchanges no longer allow anonymous trades to occur. However, there are still mechanisms available to traders to conduct over-the-counter, or OTC deals so they avoid regulated exchanges.
Bit Trade expects the new AUSTRAC regulations to result in the Australian cryptocurrency market attracting more investors from around the globe as well as foster stronger partnerships between traditional financial institutions and the crypto industry.
In addition to Bit Trade, we saw Blockbid also recently gain an AUSTRAC registration with their fully insured exchange.
While many proponents of cryptocurrencies bemoan the involvement of regulators, it's clear that governments all over the world are concerned with losing control over financial systems and the potential for the many hundreds of coins now in the market to be used for moving illegally gotten funds.
A recent case in the US ruled that cryptocurrencies needed to be treated as securities and were therefore subject to scrutiny by the Securities Exchange Commission there. And other countries are making all sorts of movements to either embrace or block the use of cryptocurrencies.
Australian banks have by and large eschewed getting involved at this stage but the addition of some regulation may make them rethink the risk and reward balance.
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