Australia is very close to introducing regulations for the cryptocurrency market, with the country’s Parliament scheduled to vote on a new anti-money laundering bill this week.
The news comes as bitcoin hit a new all-time high over the weekend, breaching the $6,100 level on Saturday. The cryptocurrency’s surge is unprecedented, as just a year ago it was trading at $630.
But, many analysts believe that bitcoin is doomed to fail, largely due to threats posed by possible government regulations.
In a recent report, Goldman Sachs said that bitcoin is not to be trusted because its future is unknown due to “significant regulatory risks.”
For example, China introduced a ban on initial coin offerings (ICOs) and shut down some cryptocurrency exchanges last month. And in October, Russian President Vladimir Putin also spoke in support of regulating cryptocurrencies.
Now Australia is looking close to introducing its own new laws, which, if passed, will grant additional authority to the national financial intelligence regulator AUSTRAC to oversee digital currency exchanges.
According to the proposed bill, it will be illegal for any “unregistered person” to offer digital currency exchange-related services.
“Businesses that trade digital currencies for money, and vice versa, will be required to enroll and register with AUSTRAC,” Justice Minister Michael Keenan said in August when describing the new laws.
All registered persons will also be required to “report threshold transactions and suspicious matters to AUSTRAC, and keep appropriate records.”
Australia has expressed concern over digital currencies in the past.
“Virtual currencies, such as Bitcoin, are increasingly being used by serious and organized crime groups,” the Australian Criminal Intelligence Commission (ACIC) said in a report released in August.
Some experts argue that bitcoin will collapse simply because it is unregulated. In a latest wave of comments about the cryptocurrency, Saudi billionaire investor Prince Alwaleed bin Talal told CNBC that bitcoin will “implode” one day.
“It just doesn't make sense. This thing is not regulated, it's not under control, it's not under the supervision,” Alwaleed said on Monday.
Others believe that regulation might actually help bitcoin survive. CEO of a major Chinese bitcoin exchange, BTCC, said in July that cryptocurrencies will need to face regulations in order to survive.
“I think regulation is much needed for this new asset class because otherwise, it'll run amok from society,” Bobby Lee told CNBC.
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source : http://www.kitco.com/news/2017-10-23/Australia-Is-Next-In-Line-To-Regulate-Bitcoin.html