Australia:
FACT SHEET: Setting up a cryptocurrency (Virtual Asset) exchange checklist
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Before you set up a cryptocurrency exchange, determine the
structure of your cryptocurrency exchange:
- Crypto to fiat or crypto to crypto
- Virtual assets to be exchanged
- Broker or market maker
- Provide e-wallets
- Centralised or decentralised
- Other services (cross-border payments, etc)?
-
- Draw up an end-to-end funds flow diagram
- Determine what services will be provided in Australia
- Set up an Australian entity (if required)
- Seek legal advice on which Australian regulatory regimes
apply
- Do you need an Australian Financial Services Licence
(AFSL)? - Do you need to comply with the Anti-Money Laundering and
Counter-Terrorism Financing (AML/CTF)
Regime? -
- Design and implement an AML/CTF Program including an AML/CTF
Risk Assessment (if required) - Enrol and register as a Digital Currency Exchange with AUSTRAC
(if required)
- Design and implement an AML/CTF Program including an AML/CTF
- if exchanging cryptocurrency for fiat and vice versa, and
- if geographical link to Australia
-
- Prepare and lodge an AFSL application (if required)
- If you will outsource any functions, ensure appropriate
outsourced agreements are drafted and executed - Draft Terms and Conditions, Privacy Policy and Data Breach
Policy for your exchange - Draft Financial Services Guide and Product Disclosure Statement
(if required)
Next steps
Read our blog on 5 FAQs for setting up a cryptocurrency exchange in
Australia.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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