Australia’s home-grown crypto exchange- BTC Markets announced that it has bagged the Australian Financial Services license [AFSL] via its sister firm, BTCM Payments.
An AFS license is mandatory to conduct a financial services business in the country. It authorizes the holder to provide service, advice, deal, or create a market for a financial product. Besides that, it also allows the provision of custodial or depository services, and so on.
Three months ago, FTX’s Australian subsidiary gained the AFS Licence by acquiring an unnamed entity that previously held the permit.
BTC Markets founded in 2013, rose to become Australia’s largest cryptocurrency exchange. It boasts of having over 325,000 local users who have traded $21 billion on its platform.
The fintech firm was instrumental in providing remitters access to Ripple’s On-Demand Liquidity [ODL] payments solution. This in turn made cross-border payments completed in seconds, the first of its kind technology in the nation.
Even though licensing would not be a deal-breaker, BTC Markets says it would prepare the firm for upcoming regulations.
That said, the nation’s lack of regulatory clarity has acted as a roadblock for financial firms.
The country’s largest bank, Commonwealth Bank [CommBank] had recently planned to launch its crypto trading app. But due to regulatory hassles, it had to halt the release of the pilot program.
Although the fall of Terra’s stablecoin UST along with the recent price drop in the broader crypto market might have also acted as a catalyst.
However, Australia’s newly-elected Prime Minister Anthony Albanese reportedly tasked his cabinet to deal with three top agendas. One of them is regulating the digital assets industry.
Australia’s New PM Includes Crypto As A Top Priority
Caroline Bowler – Chief Executive Officer of BTC Markets and a member of Blockchain Australia has doubled down on the newly-elected government to continue the work of the previous one and create a regulatory bill focused on digital assets.
According to the chief exec, the authorities’ “primary concern” will be to maintain a balance between formulating suitable rules and “leaving room for innovation.”
“There is a real opportunity for the government to assist with innovation and support it, relating to the significant role that financial services play in the Australian economy, but also its position globally,” Bowler concluded.