Sam Bankman-Fried, the founder of the bankrupt cryptocurrency exchange FTX, was sentenced to 110 years in prison on charges of wire fraud and conspiracy to launder money. The sentence is one of the longest ever given for white-collar crimes.
The Australian government has proposed a new regulatory framework for crypto assets that is designed to protect consumers and support innovation in the sector. The framework, which is still in its early stages of development, is expected to be finalized in 2024.
Key features of the proposed framework
Digital asset service providers (DASPs) will be required to hold an Australian Financial Services Licence (AFSL).
A new type of financial product called a ‘digital asset facility’ will be introduced.
Staking crypto in an SMSF is a complex issue that is still being debated. Some people argue that it is a form of lending, which is prohibited for SMSFs. Others argue that it is not a form of lending, and that it is therefore legal for SMSFs to engage in. The Australian Taxation Office (ATO) has not yet issued any guidance on the legality of staking crypto in an SMSF.
The Australian Securities and Investments Commission (ASIC) has cancelled the Australian financial services (AFS) licence of FTX Australia Pty Ltd (FTX Australia). The cancellation comes after FTX Australia was placed into voluntary administration on 11 November 2022. ASIC suspended FTX Australia’s AFS licence on 14 November 2022, and the suspension was subsequently extended to 24 July 2023.
National Australia Bank (NAB) has announced that it will be blocking transfers to cryptocurrency exchanges, following in the footsteps of other Australian banks including Westpac and the Commonwealth Bank of Australia. The bank cited concerns about the risks associated with cryptocurrency trading, including volatility, fraud, and money laundering.
NAB’s decision is likely to have a significant impact on the Australian cryptocurrency market, making it more difficult for Australians to buy and sell cryptocurrencies. The bank is the largest in Australia by market capitalization, and its decision could push other banks to follow suit.
