Australia’s own crypto exchange BTC markets announced via Twitter that it was the first native firm to get its hands on the Australian Financial Services License (AFSL) through its sister firm, BTCM Payments.
The AFS license is a mandatory one for any company offering financial services to conduct business in Australia. BTC markets will now be able to provide service, advice, deal, or create a market for a financial product, as well as allow the provision of custodial or depository services.
How Did BTC Markets Get The AFS License?
BTC Markets is a long-standing cryptocurrency exchange, first going online way back in 2013, and stands as the largest crypto exchange in Australia. With some 325,000 local users and $21 billion in assets traded on the platform, it’s no surprise to Aussie traders that it’s BTC Markets that attained the first license.
In a country that has struggled to find a way to properly regulate digital assets, BTC Markets were rather fortunate to bag the license. Back in March, FTX’s Australian subsidiary attained the AFS License through the acquisition of an unnamed entity that had previously received the license.
BTC Markets has said that the licensing wouldn’t be a deal-breaker, but it would allow the company to prepare for the looming regulations. Australia has always struggled with defining the regulatory standards surrounding financial firms, notably in the crypto space. An example of this is when the country’s largest bank, Commonwealth Bank (CommBank) planned to launch a crypto trading app, but it was blocked as a result of regulatory irritations.
New Prime Minister Could Accelerate Regulation
Despite the fact the market is at an unprecedented low, Australia’s newly-elected Prime Minister Anthony Albanese has put the regulation of digital assets as one of three priorities for his cabinet.
The ambition of the newly elected government hasn’t gone unnoticed by crypto firms. In fact, CEO of BTC markets Caroline Bowler hopes that the new government will continue the work of the previous one, focusing on creating a digital assets bill.
Bowl stated that “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.”
With the markets down, now seems like the perfect time for companies like BTC markets to push forward with regulation and use their resources to facilitate this process for the acting government.