Bitcoin To Be Regulated By Australia Under FLC?
Australia is on the way to become one of the first countries, who will regulate e-currencies under its counterterrorism and anti-money laundering financial laws.
The most prominent digital currency Bitcoin globally is backed by a computer code instead of physical substance. According to the Australian financial intelligence agency AUSTRAC, the digital currency anonymity payments attracts the terrorism financing. The agency is also a co-host of a counterterrorism financing summit with Indonesia in Bali.
The summit of the work Australia will be informed by the Justice Minister Michael Keenan, who is working to improve the counterterrorism and anti-money laundering financial legislation after a review recommending the digital currency regulation.
The report of the AUSTRAC Terrorism Financing in Australia 2014 states that the online, electronic and new payment methods based on the financial risks of emerging terrorism, which was going to increase as the use of these systems grew over the short term.
Terrorist groups engage in recruiting, radicalization and communication online, who have a high risk of using the online systems and digital currencies.
For terrorism financing activities, the prepaid travel cards have been frequently used to transfer funds offshore.
The acting manager of strategic intelligence and policy AUSTRAC Brad Brown states that there were cases of the Bitcoin misuse all over the world. He also points towards the MT Gox, which is a defunct bitcoin exchange in Tokyo, where millions of dollars went missing. “In my opinion, it is very important to regulate, where there is a risk of abuse of the terrorism laundry and money laundering” further stated by the Mr. Brown.
The Anti-Money Laundering and Counter-Terrorism Financing Act recommends that the act amended to regulate activities regarding the digital currency. Additionally, it also recommends that the e-currency definition should be broadened to include digital currencies, which are not backed by a physical asset.