The Australian Government has introduced draft legislation into Parliament that would bring digital currency exchange under the umbrella of Australia's Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regime.
Under Australia's current laws convertible digital currencies are largely unregulated as they fall outside the scope of the existing AML/CTF framework. The new bill entitled Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2017 (Bill) is designed to close the regulatory gap by bringing digital currency exchange providers under the oversight of Australia's financial intelligence agency (AUSTRAC).
The Bill would make it mandatory for digital currency exchanges to be registered with AUSTRAC and comply with its record-keeping and reporting requirements, including customer identification checks and due diligence obligations.
The Bill has been referred to a Senate Committee with a report due on 16 October 2017.
A copy of the Bill is available here.