Australia Moves to Protect Investors with New Licensing Rules

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Australian crypto investors are set for greater protection under a new government proposal. The Treasury has drafted laws requiring crypto trading platforms and digital wallet services to hold a financial services license, just like traditional banks and investment firms.

The key change involves classifying these platforms as formal financial products. This means they must adhere to strict rules designed to safeguard customer funds.

The government stated that this “focuses on businesses that hold assets on behalf of clients,” aiming to prevent a repeat of the “major losses for consumers” seen from recent high-profile collapses in the crypto industry.