The Australian Senate last week passed a bill that amends the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 to expand its scope to include digital currency exchanges.
With the passing of the Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2017, digital currency exchanges would be required to register with the Australian Transaction Reports and Analysis Centre (AUSTRAC). The bill also requires the AUSTRAC to maintain a Digital Currency Exchange Register.
Fintech Australia has listed the key takeaways from the bill. The digital currency exchange providers will now be required to identify, mitigate and manage the money laundering and terrorism financing risks they may face; identify and verify the identities of their customers; report suspicious transactions to AUSTRAC, and maintain certain records related to transactions, customer identification and their program for seven years.
“This is a reform that ADCA has been calling for. We have been delighted to work with the Attorney-General’s Department and AUSTRAC on a sensible regime to provide business certainty and confidence to consumers,” Leigh Travers, CEO of ICO and blockchain consultancy DigitalX and Deputy Chair of the Australian Digital Commerce Association (ADCA), said.
The Australian government has been taking steps towards creating a positive environment for digital currency businesses operating in the country. Earlier this year, the government removed the goods-and-services tax (GST) on digital currency purchases.
