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Sign upFACT SHEET: Checklist for setting up a Cryptocurrency (Virtual Asset) Exchange in Australia
Before you set up a cryptocurrency exchange…
☐ Determine the service(s) you will provide as part of your cryptocurrency exchange, and what will be traded. For example, consider:
- Will you exchange crypto to fiat, crypto to crypto, or both?
- What virtual assets will be exchanged?
- Will you operate as a broker or market maker?
- Will you provide e-wallets?
- Will you provide other services (cross-border payments, DeFi, etc)?
☐ Determine the structure of your cryptocurrency exchange. For example:
- Will you operate as a broker or market maker?
- Will it be centralised or decentralised?
- How will you maintain liquidity?
- What services will be outsourced (if any)?
☐ Draw up an end-to-end funds flow, and crypto flow, diagram
☐ Determine your target market and, if you are located overseas, 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)?
- What are your obligations under the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Regime?
- Do any banking laws apply?
☐ Prepare and lodge an AFSL application (if required)
☐ 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 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)
☐ Review promotional material for compliance with Australian consumer laws
Next steps
Read our blog on 5 Frequently asked Questions for setting up a Cryptocurrency exchange in Australia.
If you have any questions, please contact us to speak to our team.
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Author: Sarah Archer (Senior Associate)
