The Australian government is going to regulate Bitcoin (Bitcoin) exchanges attempting to crackdown on terrorism financing and money laundering, CNBC reported on Thursday.
The government officials proposed a set of reforms strengthening the Anti-Money Laundering and Counter-Terrorism Financing Act.
This will bring digital currency exchanges where traders can buy and sell digital currencies using fiat money under the remit of the Australian Transactions and Reporting Analysis Centre (AUSTRAC).
"The threat of serious financial crime is constantly evolving, as new technologies emerge and criminals seek to nefariously exploit them. These measures ensure there is nowhere for criminals to hide," said Australia's Minister for Justice Michael Keenan in a press release.
Bitcoin’s price has risen 348% this year setting a new all-time record and is currently trading at $4,476, its market cap has increased to $73.93 billion.
"It signifies the growing recognition of bitcoin and other cryptocurrencies as influential value transfer protocols by governments. Compliance with AUSTRAC policies will weed out the crooks and ensure that only serious bitcoin businesses are able to serve the market," Aurélien Menant, founder and CEO of Gatecoin, a digital currency exchange based in Hong Kong, told in an interview to CNBC.
It should be noted that similar moves have already been made by China and Japan. Earlier this year People's Bank of China warned several exchanges they could face consequences if they try to violate anti-money laundering regulations. Japan has accepted Bitcoin as a legal currency which required exchanges to comply with regulatory requirements.