Some jurisdictions have put mandatory regulations for BTC and crypto-related companies. For example, a law demands that all crypto service firms and exchanges have a financial license. Such laws are appropriate as more criminal activities and scams are rampant through the use of cryptocurrencies.
As digital assets and crimes grow, many governments are on edge. They are striving to keep up with digital assets’ innovative and systematic move. This explains the spike in regulatory watchdogs within the crypto industry. Hence, investors and other crypto participants could get some security for their funds as they engage in the digital space.
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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.
Currently, Australia has no mandatory and regulatory laws binding on crypto firms for their operations. However, the exchange stated that by getting the license, it would be in a better position to serve its customers. It could provide more new products and create a bridge linking digital currencies and traditional ones.
With the license, it is the first crypto exchange in Australia to get financial approval. This means that it scaled through the application process of AFSL (Australian Financial Services License) through its subsidiary company. Hence, BTC Markets can boast of having attained an AFSL license.
BTC Markets had applied for the financial license as of August 2020. After waiting for two years, the crypto exchange finally got approval from the ASIC.
Certification For BTC Markets And Implications Of Financial License
Additionally, the crypto exchange had received the information security management certification of the International Organization for Standardization (ISO certified). Also, Blockchain Australia, the country’s cryptocurrency industry, has authorized the crypto exchange.
The financial services license provides BTC Markets with many privileges for its operation. For example, the firm can conveniently offer custodial and depository services such as trading and storing financial assets and securities. Also, it can develop financial products and participate in different financial markets.
In February, the Australian crypto exchange had an agreement with SelfWealth, a stock market trading site. The deal will kick off on June 30 and is centered on providing users with trading opportunities for some significant assets. Some tokens include Bitcoin, ETH, LINK, UNI, and XRP.
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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.
Featured image from Twitter, chart from TradingView.com