Before you set up a cryptocurrency exchange, determine the structure of your cryptocurrency exchange:
- Crypto to fiat or crypto to crypto
- Virtual assets to be exchanged
- Broker or market maker
- Provide e-wallets
- Centralised or decentralised
- Other services (cross-border payments, etc)?
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- Draw up an end-to-end funds flow diagram
- Determine what services will be provided in Australia
- Set up an Australian entity (if required)
- Seek legal advice on which Australian regulatory regimes apply
- Do you need an Australian Financial Services Licence (AFSL)?
- Do you need to comply with the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Regime?
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- Design and implement an AML/CTF Program including an AML/CTF Risk Assessment (if required)
- Enrol and register as a Digital Currency Exchange with AUSTRAC (if required)
- if exchanging cryptocurrency for fiat and vice versa, and
- if geographical link to Australia
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- Prepare and lodge an AFSL application (if required)
- If you will outsource any functions, ensure appropriate outsourced agreements are drafted and executed
- Draft Terms and Conditions, Privacy Policy and Data Breach Policy for your exchange
- Draft Financial Services Guide and Product Disclosure Statement (if required)
Next steps
Read our blog on 5 FAQs for setting up a cryptocurrency exchange in Australia.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.