FACT SHEET: Setting up a Cryptocurrency (Virtual Asset) Exchange Checklist
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)?
☐ 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?
☐ 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
☐ Prepare and lodge an AFSL application (if required)
☐ If you will outsource any functions, ensure appropriate outsourced agreements are drafted and executed
☐ Draft Financial Services Guide and Product Disclosure Statement (if required)
Read our blog on 5 FAQs for setting up a cryptocurrency exchange in Australia.
If you have any questions, please contact us to speak to our team.
Author: Alexa Bowditch (Lawyer)