AML Regulation Unlocks Safe Growth of Digital Currency Sector

Amendments to Australia's Anti-Money Laundering and Counter-Terrorism Financing laws that passed today will facilitate the accelerated and safe growth of the innovative digital currency sector.

The Australian Digital Currency Association, ADCA, which represents most Australian digital currency businesses, has welcomed the move to formally regulate the digital currency sector that requires digital currency exchanges to register with AUSTRAC and meet AML policy and reporting obligations.

ADCA CEO, Nicholas Giurietto, said "ADCA has been calling for formal regulation of digital currency businesses in Australia since its inception and has been pleased to work with the Australian Government in an extensive consultation process to help ensure that not only the legislation but also the detailed regulation that will follow is as effective as possible."

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More Than Fintech Leadership At Stake, Australia Must Create Blockchain Friendly Environment

Good news today that Australia has bipartisan support for cryptocurrency (e.g. bitcoin) as an offical form of currency.  You can read the article here: Bipartisan push for the Reserve Bank to back Australian bitcoin (Eryk Bagshaw, SMH, 8 Aug 2017).  More commentary and history at Bitsonline (Jon Southurst, 7 Aug 2017).

Liberal Senator Jane Hume and Labor Senator Sam Dastyari have formed the Parliamentary Friends of Blockchain which launches today at Parliament House.

The government can do a lot to foster an environment where Australia can lead the world in the adoption of new technologies. They can use incentives and subsidies to level the playing field in the short to medium term.  They can also use regulation to create certainty and protect the vulnerable.

However, even well meaning government activity can create unintended consequences. What principles should we use to guide thought?  Here are my initial suggestions:

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