Some jurisdictions have mandatory regulations in place for BTC and crypto-related companies. For example, a law requires all crypto services companies and exchanges to have a financial license. Such laws are appropriate as more and more criminal activity and scams are rampant through the use of cryptocurrencies.
As digital assets and crimes increase, many governments are on edge. They strive to keep up with the innovative and systematic movement of digital assets. This explains the spike in regulatory watchdogs within the crypto industry. Therefore, investors and other crypto participants could get some security for their funds when engaging in the digital space.
Related Reading | Bitcoin Blockchain is starting to wake up from the death spiral
One of Australia’s crypto exchanges, BTC Markets, has finally secured a financial services license. The country’s main regulatory agency, the Australian Securities and Investments Commission (ASIC), issued the license to the company. According to the report, the license was issued to BTCM Payments, a sister company of crypto exchange BTC Markets.
Currently, Australia does not have mandatory laws and regulations that are binding on crypto businesses for their operations. However, the exchange said that by obtaining the license, it would be better able to serve its customers. This could provide more new products and create a bridge between digital currencies and traditional currencies.
With the license, it is the first crypto exchange in Australia to gain financial approval. This means that it has evolved through the AFSL (Australian Financial Services License) application process through its subsidiary. Thus, BTC Markets can boast of having obtained an AFSL license.
BTC Markets had applied for the financial license in August 2020. After waiting two years, the crypto exchange finally got ASIC approval.
Certification for BTC Markets and Financial Licensing Implications
Additionally, the crypto exchange had received the International Organization for Standardization’s Information Security Management Certification (ISO certified). Also, Blockchain Australia, the country’s cryptocurrency industry, has licensed the crypto exchange.
The financial services license provides BTC Markets with many privileges for its operation. For example, the company can easily offer custodial and custodial services such as trading and storage of financial assets and securities. In addition, it can develop financial products and participate in different financial markets.
In February, the Australian crypto exchange entered into an agreement with SelfWealth, an exchange trading site. The deal will begin on June 30 and aims to provide users with trading opportunities for certain important assets. Some tokens include Bitcoin, ETH, LINK, UNI, and XRP.
Suggested Reading | Quantum computers emerge from an Australian lab – A threat to cryptocurrency?
Regarding the license, Catherine Bowler, CEO of BTC Markets, mentioned that it was a preparatory campaign for their crypto business. This pushes them towards progressive success for certification with System and Organizational Controls (SOC) 2. The Australian crypto industry currently registers BTC Markets as the top performing company.
Featured image from Twitter, chart from TradingView.com