Australian government has recently proposed to bring in stringent regulation over Bitcoin Exchanges to counter terrorism and money laundering in the rise of significant evil creeping into the sphere of digital currency causing people to loose valuables while transacting in cryptospace.
Australian senators divided by parties got unified over the common objective of legalizing Bitcoin formally. Liberal Senator Jane Hume and Labor Senator Sam Dastyari have joined hands to compel the Central Bank to accept Bitcoin as an official currency form or risk the possibilities of tapping in the $145 billion a year worth financial service industry of Australia as per reports published by The Sydney Morning Herald.
On April 1, Japan legalized Bitcoin and also declared it as an official mode of payment. Soon after some time, Australian Government also announced that Bitcoin in Australia can be used “Just Like Money”.
Senator Dastyari feels that this revolutionary move of the Australian financial institutions and Reserve Bank will serve as a boost for Bitcoin market in Australia. This recent regulation will strengthen Australian Transactions and Reporting Analysis Centre (AUSTRAC) which recently hogged the headlines when Commonwealth Bank of Australia circumvented the nation’s terrorism financing and anti-money laundering laws by not submitting proper reports of transactions processed through its intelligent ATM’s.
With its recent surge in Bitcoin prices crossing $4000 the regulation comes as a breather to many. According to the proposal of Justice Minister Michael Keenan, the Bill will provide a net regulatory relief worth $36 million to the digital currency industry annually. Crimes in the fields of finance have been on a constant up rise but the latest regulation will make sure the ones having malicious intent are identified and punished accordingly. Ceasing the free flow of money to terrorism funding operations is one of the stepping stones of a sound defense mechanism. It is expected that the business houses in Australia will help AUSTRAC in their mission of wiping out malpractice from the digital currency arena.
Australia’s move comes at a time when regulators of countries around the globe are toiling hard to usher in Bitcoin legislature. As mentioned above as well, the Japanese government gave legal status to Bitcoin urging investors to comply with KYC and AML requirements.
Various Chinese Bitcoin exchanges also ceased Bitcoin withdrawals earlier this year to validate system upgrade to make it KYC and AML compliant. Although the exchanges later resumed the withdrawals.The European Union has also been in talks regarding ways to impose rules on the Bitcoin periphery under its Fourth Anti-Money Laundering Directive.
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