Crypto.com, a Hongkong-based company announces that it has finally acquired its Australian Financial Service License. This was made possible through The Card Group Pty Ltd and has been approved by Australia’s Foreign Investment Review Board.
Crypto.com is a cryptocurrency and payment platform that aims to promote the massive adoption of cryptocurrencies. It was founded in 2016 by Kris Marszalek and it has 5 million users to date.
Crypto.com is the first cryptocurrency company in the world to have ISO/IEC 27001:2013, ISO/IEC 27701:2019, PCI: DSS 3.2.1, Level 1 compliance, and CCSS.
Kris Marszalek, Crypto.com CEO made this statement in line with the recent AFSL acquisition:
“We are extremely proud to secure an AFSL and look forward to having a direct relationship with our Australian customers. We are committed to accelerating the world’s transition to cryptocurrency; working within the regulatory frameworks of the markets we operate in is a key pillar of achieving our mission.”
Crypto.com offers a wide range of services to its customers. Among the services, they offer trading via spot exchange, crypto debit cards, staking, and crypto loan.
This is considered a milestone for the company in line with its commitment to securing licenses. Also, to work within the local regulatory frameworks implemented in markets throughout the world.
Securing an AFSL has its pros and cons. But having one authorizes you for retail clients, wholesale clients, or both. This is mandatory for all blockchain businesses that offer financial services in Australia. Hence, they have to comply with the country’s Anti-Money Laundering and Counter-Terrorism Financing Act 2006.
In 2017, the Australian government declared that cryptocurrencies were legal. It has specified that BTC (Bitcoin) (and cryptocurrencies that share its characteristics) should be treated as property, and subject to Capital Gains Tax (CGT). To date, the government has implemented a non-interventionist regulation concerning digital assets.
But the government is not too lax of course. All unregistered exchanges will be charged and subjected to penalties.
Countries around the world have implemented regulations to regulate cryptocurrencies. In February 2019, the Financial Action Task Force (FATF) introduced the “ Travel Rule”. Under this, exchanges are required to share the real-world identity of their customers to support Anti-Money-Laundering (AML) and Combating Funding of Terrorism (CFT) activities.
The constant effort of governments to regulate cryptocurrencies will certainly benefit the crypto market as a whole. An orderly and secure environment is desirable for financial institutions and investors to conduct business. Regulations secure everything in place. With regulations at play, the growth in the massive adoption of cryptocurrencies becomes certain.