For BTC and cryptocurrency-related businesses, certain countries have mandated rules. For instance, a legislation mandates that all cryptocurrency exchanges and service providers hold a financial licence. These rules are necessary because the use of cryptocurrency is becoming more widely used in frauds and criminal activity.
Many countries are on edge as digital assets and crimes increase. They are making an effort to stay up with the inventive and organised movement of digital assets. This explains the rise in the number of regulatory watchdogs in the cryptocurrency sector. As a result, investors and other cryptocurrency users could obtain some level of financial protection while participating in online activities.
One of the crypto exchanges in Australia, BTC Markets, has finally secured a financial services license. The country’s top regulatory agency, the Australian Securities and Investments Commission (ASIC), issued the license to the firm. According to the report, the license was issued to BTCM Payments, a sister company of the crypto exchange BTC Markets.
Australia currently lacks any obligatory or regulatory legislation that apply to crypto companies’ operations. But the exchange claimed that by obtaining the licence, it would be better able to assist its clients. It might offer more novel products and build a link between traditional and digital currencies.
It is the first cryptocurrency exchange in Australia to receive financial approval thanks to the licence. This indicates that it successfully navigated the AFSL (Australian Financial Services License) application process through its subsidiary firm. BTC Markets can thus take pride in obtaining an AFSL licence.
By August 2020, BTC Markets has submitted an application for the financial licence. The cryptocurrency exchange finally received ASIC approval after two years of waiting.
Financial License Implications And BTC Market Certification for Australian cryptocurrency exchange
The Australian cryptocurrency exchange also possessed the International Organization for Standardization’s certification in information security management (ISO certified). The Australian cryptocurrency exchange has also been approved by Blockchain Australia, the nation’s cryptocurrency industry.
BTC Markets has a number of advantages according to the financial services licence that it operates under. For instance, the company can easily provide depository and custodial services, such as trading and storing stocks and financial assets. It can also create financial products and engage in other financial marketplaces.
The stock market trading website SelfWealth and the Australian cryptocurrency exchange reached an agreement in February. The agreement, which will begin on June 30, is focused on giving users trading alternatives for some significant assets. Bitcoin, ETH, LINK, UNI, and XRP are a few examples of tokens.
Regarding the license, Catherine Bowler, the CEO of BTC Markets, mentioned that it’s a preparatory drive for their crypto firm. It pushes them to a progressive achievement for certification with the System and Organizational Controls (SOC) 2. The Australian crypto industry currently records BTC Markets as the top-performing firm.