The cryptocurrency world has dramatically changed over the last few years, and Australia is a significant participant in this transformational process. As digital assets became more popular, Australian cryptocurrency exchanges emerged, responding to the increasing demand for selling, buying, and trading cryptocurrency.
In this article, we’ll explore the development and history of Australian cryptocurrency exchanges, following their beginnings, important landmarks, and the part they influence the country’s cryptocurrency landscape. Click here to read about how these exchanges emerged, overcame challenges, and shaped the blockchain industry in Australia.
The starting times of Crypto exchanges in Australia
The first crypto exchange to be established in Australia was created at the end of 2013 by a Melbourne-based company named CoinJar. Initially, Bitcoin was the one cryptocurrency that could be traded, and CoinJar had few users. Yet, cointree.com paved the way for other cryptocurrency exchanges in Australia to follow.
The year 2014 saw two new exchanges introduced: Bit Trade Australia and BTC Markets. They provided a broader selection of cryptocurrencies to trade and drew more customers. But, they confronted many obstacles, such as regulatory obstacles and the general population’s need to improve the understanding of cryptocurrencies.
In 2017 the Australian government adopted legislation that regulates digital currencies in the Anti-Money Laundering and Counter-Terrorism Financing Act. This law has brought more assurance to businesses in the cryptocurrency industry operating in Australia and has helped boost public confidence in the sector.
The rise of crypto exchanges has impacted Australia.
In the years following, more cryptocurrency exchanges came up in Australia. Some of the most prominent ones comprise Independent Reserve, Coinspot, and Swyftx. They offered various benefits, such as fewer fees, more cryptocurrencies, and better user interfaces.
As the demand for cryptocurrency grew, the number of people who use it on these exchanges increased. In 2017 the amount of Australians using cryptocurrency grew by two-thirds in 2018, and by the end of 2018, more than 2 million Australians had used or owned cryptocurrency. For durable exchanges
The regulatory issues
However, the rise of crypto exchanges within Australia faced challenges. In 2017 the Australian government adopted new regulations that require cryptocurrency exchanges to join the Australian Transaction Reports and Analysis Centre (AUSTRAC) and to comply with anti-money laundering (AML) as well as counter-terrorism finance (CTF) laws.
Although this was essential to fight criminal activities and protect investors, it placed an enormous cost on cryptocurrency exchanges to ensure compliance with the regulations. A few smaller exchanges couldn’t comply with these regulations and were forced to close, while others were required to invest in costly compliance measures.
The development and history of Australian cryptocurrency exchanges show the country’s active participation in the worldwide crypto revolution. From humble beginnings to advancements in regulation and the acceptance of cutting-edge technology, Australian exchanges have grown with the growing cryptocurrency sector. Understanding the history of this journey makes it possible to appreciate the accomplishments, challenges, and potential of Australian cryptocurrency exchanges as they continue to influence the direction of digital financial services in the country.