Australian Crypto Exchanges Must Register with Regulatory Body

  From April 3 Australian exchanges will have to register with Australian Transaction Reports and Analysis Centre and meet their obligations
02 April 2018   584

AUSTRAC is Australia's financial intelligence agency with regulatory responsibility for anti-money laundering and counter-terrorism financing. Its aim is to identify threats and criminal abuse of the financial system, act to protect Australia's economy, help keep Australia safe from financial and other serious crime and build and maintain trust in Australia's financial system as part of the global community.

Australian Transaction Reports and Analysis Centre has announced the new regulatory requirements for digital currency exchange providers which come into force from April 3, 2018.

We see this as an important step toward building real confidence with the general public and investors that the cryptocurrency industry is not only safe but is supported as the way of the future. For new and existing customers, there will be no impact. CoinTree has always been proactive with its policies and practices. We are happy to say that we already meet a majority of the new requirements. For those requirements that aren’t quite completely met yet, the changes required are internal only and will not affect any customers.

Team of CoinTree Exchange (credit: CryptoNinjas)

According to the new requirements Australian cryptocurrecny exchanges will be demanded to register with AUSTRAC and meet such obligations as:

  • Customer identification and due diligence
  • Adopting and maintaining an AML/CTF program, including identifying, managing and lessening money laundering and terrorism financing risk
  • Suspicious matter reporting
  • Threshold transaction reporting, including cash amounts of $10,000 or more
  • Record keeping

We recommend our readers to use only trustworthy exchanges and choose their investment strategies carefully.

Bakkt Won't Support Margin Trading

CEO of a trading site shared new information about the platform
21 August 2018   114

The CEO of Bakkt trading platform Kelly Loeffler said that the site will not support margin trading, and all transactions will be fully secured with assets.

A critical element to price discovery is physical delivery. Specifically, with our solution, the buying and selling of Bitcoin is fully collateralized or pre-funded. As such, our new daily Bitcoin contract will not be traded on margin, use leverage, or serve to create a paper claim on a real asset. This supports market integrity and differentiates our effort from existing futures and crypto exchanges which allow for margin, leverage and cash settlement. 

Kelly Loeffler

CEO, Bakkt

Also, Kelly Loeffler told new details about the upcoming platform. Thus, at the present time, a robust framework for the creation of an exchange is being developed. This framework will have several important characteristics, including compliance with regulatory requirements of regulators, a transparent system of pricing for assets and infrastructure at the institutional level.

Parent company of the New York Stock Exchange (NYSE), one of the world's largest financial corporations Intercontinental Exchange (ICE) in partnership with Microsoft, Starbucks and BCG are engadged in creating Bakkt.

Bakkt's ecosystem will include federally regulated exchanges, custodian services, applications for merchants and users. Bitcoin, as the most liquid crypto currency, will be the first in the listing of the new platform and will be traded in pairs with fiat currencies.