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 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.

If you have any questions, please contact us to speak to our team.

Author: Alexa Bowditch (Lawyer)