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   815

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.

First Korean Crypto Fund to Close

Main reason of cryptocurrency fund closure is regulatory pressure
12 November 2018   77

Zeniex, a small South Korean exchange, which was also the operator of the country's first crypto-investment fund, closes amid government actions, Finance Magnates reports, citing local media.

The exchange opened in May 2018 and in the last 24 hours processed transactions for $ 410,000, according to information on its website.

We have come to the conclusion that continuing to operate such service will be difficult. We sincerely apologize that we were unable to meet the expectation of our Zeniex users and supporters.

Zeniex Team

As noted by Finance Magnates, the authorities did not take decisions regarding the platform for the exchange of cryptocurrency due to its modest scale, however, they were interested in its foundation called "Zxg Crypto Fund No. 1." The Financial Services Commission and the Financial Supervision Authority throughout October warned against the impermissibility of providing investment services of this kind without registration.

According to the information on the company's website, the fund intended to attract 1,000 ETH (about $ 211,000) in mid-September. Whether the required amount has been collected is not specified. At the same time, the company notes that the volume of attracted funds did not require it to register with the regulatory authorities of the country.

In the investment section of the company's website, two projects are listed: MultiVAC, “the next-generation public blockchain for large-scale and complex distributed computing,” and Blockcloud, which collected more than 1 million on the recent ICO.

Zeniex claims that he is forced to close his fund, because he "is experiencing and will experience difficulties in the light of the pressure of financial regulators." The company also promised to transfer all acquired tokens to investors.