Treasury Meeting

ABIB recently engaged in a key meeting with the Commonwealth Treasury to address concerns regarding their proposal to regulate digital asset platforms. The proposed regulatory framework, which seeks to apply stringent financial services licensing (AFSL) requirements to all digital asset platforms, could have significant implications for Bitcoin-only exchanges.

During the meeting, ABIB emphasized the need for a distinct regulatory approach for Bitcoin, separating it from the broader cryptocurrency and digital asset market. The current proposal risks imposing excessive financial and operational burdens on Bitcoin-only platforms, which operate with different values and risk profiles compared to other digital assets.

Key issues discussed included:

• The impact of AFSL licensing requirements on small and independent Bitcoin exchanges.
• The necessity for regulatory clarity to ensure that Bitcoin is not unfairly grouped with riskier digital assets.
• The potential negative effects of the proposal on the growth and innovation within the Bitcoin industry, including higher costs and capital requirements.

ABIB’s goal is to ensure that regulations foster innovation and consumer protection without stifling the Bitcoin industry through disproportionate compliance burdens​​​.