In a major step to further the growth of digital currency businesses in Australia, leading operators of bitcoin and other digital currency businesses in the country have come together to launch an Australian Digital Currency Industry Code of Conduct.

The Australian Digital Currency & Commerce Association (ADCCA) has coordinated the development of the Code of Conduct, in response to a recommendation of the Senate Economic References Committee Enquiry into Digital Currency last year, the press release said.

"The development of a code of conduct for digital currency businesses is a critical step in the continued growth of the digital currency industry in Australia”, said Nicholas Giurietto, CEO of ADCCA. “The Code of Conduct will provide confidence to consumers, banking partners and regulators that ADCCA Certified members have rigorous probity, anti-money laundering and consumer protections in place.”

In a report, entitled "Digital currency - game changer or bit player", the Senate Economics References Committee made the following recommendations:

• Digital currency should be treated as money for the purposes of the goods and services tax and that the government should consult with the states and territories to consider amending the definition of money in the A New Tax System (Goods and Services Tax) Act 1999 and including digital currency in the definition of financial supply in A New Tax System (Goods and Services Tax) Regulations 1999.
• Further examination of appropriate tax treatment of digital currencies to be included in the taxation white paper process, with particular regard to income tax and fringe benefits tax.
• Establishing a Digital Economy Taskforce to gather further information on the uses, opportunities and risks associated with digital currencies. It added that the committee supports ADCCA's continued development of a self-regulation model, in consultation with government agencies.
• The committee recommends that the statutory review considers applying AML/CTF regulations to digital currency exchanges.

ADCCA members have endorsed a self-regulatory framework based upon six key principles that include:

• Appropriate AML/CTF processes in place including the ability to report any suspicious transactions;
• Appropriate KYC processes and monitoring in place;
• Professional conduct standards including background checks for directors, officers and substantial shareholders;
• Members’ participation in an external dispute resolution scheme to ensure that consumers have a fair opportunity to seek redress for any perceived service failures;
• Adherence to the Code of Conduct to be monitored through an annual audit and re-certification process;
• ADCCA shall manage an accreditation review and sanctions process to deal with any breaches of the Code of Conduct.

ADCCA said that these endorsed principles form the framework for the Australian Digital Currency Industry Code of Conduct which is expected to be completed by May 2016.

ADCCA is Australia’s leading council and representation of and for digital currency businesses along with other key industry participants. It aims to act as the essential connection between merchants, industry, governments, regulators, financial institutions and influential policy forums which give direction to this emerging industry at home and abroad.