The government of Australia has published laws that will enhance the rules and regulations on FinTech startups by letting them operate without a full license. This allows crypto-currency transactions within the country without any hassle. The government released new drafts of the framework for the new regularities. It will relax the requirements of license for new and innovative FinTech start-ups in the country. Each company had meet all licensing requirements if it had to be listed in Australian Securities and Trade Commission. New companies can operate for 24 months before obtaining a full license. They must adhere to consumer protection and disclosure requirements.
The new framework will allow start-ups to work on companies that provide financial advice, issues or facilitates consumer credit, non-cash payment products and provide crowd-funding services.
Non-cash payment options include the use of Bitcoin for payments. The Living of Satoshi startup has seen a significant growth in recent years and this new relaxation of rules which will remove the double taxation of digital currency transactions in Australia will surely boost the crypto-currency market.
Crowd-funding service will allow start-ups and companies seeking finance through initial coin offerings. It will be a new way to fund and promote economic growth in the country powered by crypto-currencies.
Scott Morrison, Australian Federal Treasurer has called the new draft legislation a game changer for the financial service industry. He said “The FinTech regulatory sandbox will allow a broad scope of activities to be tested without the need to meet all the existing licensing requirements of the Australian Securities and Investments Commission. The enhanced regulatory sandbox will help firms overcome the initial regulatory burden and costs of licensing that may otherwise hinder innovative offerings.”