Australian authorities to regulate bitcoin

The Australian Parliament makes a move to control use of cryptocurrency
17 October 2017   638

Within the reform of governmental anti-money laundering and counter-terrorism financing law Australian authorities published a revision of the bill according to which bitcoin exchanges will be strictly controlled by the law. The Senate Legal and Constitutional Affairs Legislation Committee give priority to the regulation of digital currency operators.

The main measures applied to digital currency exchanges include the possibility of imposing civil penalties for operators of digital currency exchange services which are not registered, and enabling chief executive of Australian Transaction Reports and Analysis Centre to expand or narrow the boundaries of the digital currency definition.

AGD informed the committee that this aspect of the bill reflects technological advancements in digital currency. It noted that the current regulatory regime under the AML/CTF Act was designed in 2006 and applies only to an 'e-currency', which is 'backed by a physical thing. It excludes convertible digital currencies, such as Bitcoin, which are backed by a cryptographic algorithm'. 
 

Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2017 

The approach of the committee to regulation is supported by an overview of the current legislation in accordance with the recommendations of the Attorney General (AGD). Legal Board called for recommendations on possible exemptions for transactions with a low value of less than $ 1,000 at bitcoin exchanges while The Law Council called imprisonment in connection with aggravating offenses between 2-4 years and even up to 7 years in cases which are extremely severe.

As soon as the committee recommended the bill to be introduced, the new service and register will be designated within six month’s from the adoption of the bill.

Coinbase to Issue New Statement

As reported, company says it was wrong about SEC approval of acquisitions of Keystone Capital Corp., Venovate Marketplace Inc. and Digital Wealth LLC
18 July 2018   24

Vice President of Communications of Coinbase Rachel Horwitz denied the information that the company received approval from the Securities and Exchange Commission of the United States for a deal to buy brokerage companies. This is reported by Bloomberg.

It is not correct to say that the SEC and FINRA approved Coinbase’s purchase of Keystone because SEC was not involved in the approval process. The SEC’s approval is not required for the change of control application. Coinbase has discussed aspects of its proposed operations, including the acquisition of the Keystone Entity, on an informal basis with several members of SEC staff.
 

Rachel Horwitz

Vice President of Communications, Coinbase

On Monday, a spokesman for Coinbase said that the company received permission from the SEC and the Agency for Regulation of Financial Institutions (FINRA) to purchase Keystone Capital Corp., Venovate Marketplace Inc. and Digital Wealth LLC.

However, despite the refutation from Rachel Horwitz, Coinbase still intends to obtain a license to carry out brokerage activities.