Registering a FinTech company in Australia is one of the most attractive options for entrepreneurs seeking to do business in this country. So let’s take a closer look at the key features of digital markets in Australia, as well as ways in which they’re regulated.
There’s no specific rules governing digital markets in Australia. Those planning to register an Australian crypto company should keep in mind that the supervision of its operation will be done pursuant to the current regulatory framework. If a crypto company trades in cryptoassets, it’s deemed to do business in a digital market & must, therefore, abide by Australian legislation (e.g a requirement to obtain an AFSL)
CISs may be contract-based, unincorporated or corporate entities (e.g. requiring registration of an LLC in the Commonwealth of Australia).
Depending on the structure, a platform or scheme operated by a fintech company may have to abide by CIS regulations (e.g. apply for an AFS or obtain an ACL). Activities of such sites are supervised by the ASIC & carried out pursuant to the Law on Protection of Consumer Rights & Law on Financial Services.
Providing P2P lending services in the Commonwealth of Australia requires getting an AFSL & compliance with the Corporate Law. Extending consumer loans in the Commonwealth of Australia requires obtaining an ACL.Providing lending services to retail investors requires ASIC registration.
There’s no requirement to provide customer data to 3rd parties; however, lenders & credit agencies may be required to collect & disclose loan-related information.
Those interested in registering a payment service company in Australia should keep in mind the latest changes related to the sharing of customer data with 3rd parties. It’s projected that the CDR system enabling customers to share personal data with licensed providers of financial services (e.g. banking institutions & 3rd parties) will soon be put in place. The system will be implemented in the banking sector, which will provide consumers with easier access to their data.
For more information on CDR, please consider seeking a consultation with a CDR expert in Australia. Doing so will help you gain a better understanding of all the nuances of open banking.
Entrepreneurs considering opening a crypto company in Australia must also adhere to GDPR. Failure to do so may have a negative impact on the processing of information of Australian companies that provide services in Europe.
Considering registering a fintech company in Australia? Need advice on the regulation of digital markets in the Commonwealth of Australia? Why not contact IQ Decision UK?