Australian government brings Bitcoin exchanges under anti-money laundering regulation

The Australian government is considering bringing Bitcoin and other digital currency exchanges under anti-money laundering regulations.

The Australian government hopes to start drafting legislative proposals in the middle of next year, according to a consultation document released by the Australian Justice Department this week. Legislative work is expected to be completed in 2018.

The Australian government has so far been seeking public comment on the proposal, which it hopes to more broadly roll out before the end of 2017. The proposal is still in its early stages, with little information available on how the bill will be drafted and the scope of services it will cover.

“Anti-money laundering regulations need to be amended to regulate activities related to digital currencies, particularly digital currency exchanges,” the agency wrote.

The proposed plan comes a month after the Australian government released a broad policy statement on fintech, which included reducing taxation on Bitcoin and exploring legislation related to the technology. At the time, the Australian Treasury also expressed support for a high-level guidance legislative framework to govern how the Australian financial industry integrates blockchain technology.

And the Australian Senate has also called for such a move.

The regulatory plan comes as businesses across Australia begin exploring a range of blockchain applications, from trade finance to digital identity.