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"Game Changer": Australia Becomes Easy on FinTech, OIC Regulations with Bills

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The Australian government has released draft laws for an "improved regulatory sandbox" that will be easy on FinTech startups. let them run without a full license.

The Australian government has revealed plans for a new regulatory framework that will ease license requirements for new FinTech innovative start-ups in the country. The new framework will enhance Australia's sandbox for testing a wide range of FinTech products and services without the mandatory requirements to meet all the licensing requirements of the Australian Securities and Trade Commission. Services can be tested for 24 months with companies that are required to comply with consumer protections and disclosure requirements.

The new framework will allow FinTech companies to test and work on:

  • providing holistic financial advice on national and international pensions, life insurance and securities;
  • issuing and facilitating consumer credit;
  • issuing payment products other than cash ; and
  • providing a crowdfunding service .

Cashless payment services like bitcoins The Brisbane Living of Satoshi startup has experienced strong user growth in recent years and recent Australian legislation to end the double taxation of currency transactions cryptocurrency sector.

Notably, the marked inclusion of a "crowdfunding service" will be a relief for startups and companies seeking financing through initial offerings of parts (ICO), a new form of fundamentally encrypted fundraising. Earlier in September, the Australian Securities and Investments Commission (ASIC), the country's securities regulator, issued guidelines for promoters and developers of securities. OIC after recognizing their "potential".

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The Australian Federal Treasurer, Scott Morrison, has called the new bill a "change of play for competition in the financial services sector" in order to help the country become a FinTech hub in the Asia-Pacific region.

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The official stated:

[T] The FinTech regulatory sandbox will test a wide range of activities without having to meet all the licensing requirements of the Australian Securities and Investments Commission. Improving the regulatory framework will help businesses overcome the initial regulatory burden and licensing costs that could hinder innovative offerings.

The consultation on the draft by-law is open until 1 December 2017 before the final draft is adopted.

Image from Shutterstock.

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