Australia's fintech sector has been growing at an unprecedented rate recently. What used to be an unimpressive cloister of miniscule startups has grown into a full-fledged and expansive ecosystem. Australian regulators are working hard to ensure that fintech structures get all the support they need at the very early stages of their inception. In fact, fintech is so vital for Australia's economic development that even the Australian government recognizes its importance and provides all kinds of incentives for those wishing to engage in this line of business.
Regulatory Framework
The government of Australia has not yet implemented a fintech strategy for the entire country. But if you’re planning on having your company registered in Australia, you’ll be pleasantly surprised by how friendly and innovative the climate is in this sector.
The Australian Center for Innovation Center encourages companies to seek non-formal advice on regulations governing fintech in the state of Australia. The center also provides commercial entities with 12 months of non-formal support.
To open a fintech company in the state of Australia, you’ll need to get a license authorizing provision of financial services in this country. However, ASIC allows newly formed companies to test a product or service within a 1-year period without applying for a license. But such an opportunity is available only for a limited range of financial services. To find out more, you’ll need a fintech lawyer in Australia.
Is There Any Support for Blockchain Technology in Australia?
The Australian government is currently funding a project aimed at developing a nationwide blockchain strategy. As part of the project, it hosts annual conferences in which representatives of more than 30 organizations take part.
2019 saw the Australian government hold a series of extensive consultations, following which it is projected to release a report on new cryptocurrency offers (ICOs).
Which Authorities Regulate Fintech Products and Services in Australia?
Australia's main financial regulator is called ASIC. If you’re considering providing financial services in Australia, you’ll need to obtain a license from it.
APRA is charged with monitoring financial institutions, insurance companies, and pension foundations. Launching an insurance company in Australia requires applying for permission with APRA.
RBA is Australia's main banking institution. Apart from its usual functions, it is also responsible for overseeing the country’s payment systems. RBA also handles arbitration between payment systems participants.
ACCC has the responsibility of defending commercial entities and individuals for the sake of maintaining fair competition.
Financial Services for Which an AFSL License is Required
To find out whether you need a license for your type of business in Australia, you need to get legal advice.
Let us take a look at what services require their providers to obtain a license:
- consulting
- conducting financial operations in Australia
- maintaining platforms for financial operations
- providing custody services
- managing investment schemes
- providing crowdfunding services
- providing trust-related services.
Basically, you need an AFSL license for products or services that have a predominantly investment character.
How is Consumer Lending Regulated in the State of Australia?
Individuals or entities involved in provision of lending services are required to apply for an ACL license.
ASIC is revising its lending guidelines to ensure more spoton instructions on responsible lending.
Resolving international financial disputes requires holders of an ACL license to have membership in AFCA.
Need legal advice on finance-related matters in the state of Australia? Planning on registering a fintech business in the state of Australia? Get in touch with IQ Decision UK and have all your problems resolved quickly and professionally.
