To register as an exchange in Australia, an entity only needs to register with AUSTRAC.
Alongside its banking partners, Coinbase is also working with Blockchain Australia’s program which aims to provide a Digital Exchange Classification, or DCE, which would flag whether exchanges have been fully audited. This is not yet a regulated requirement for Australian-based crypto exchanges.
Mr O’Loghlen acknowledges that Australia’s regulatory landscape lags behind that of Singapore, the UK and the US, but says policymakers’ understanding has improved significantly in recent years.
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“For a long time there was a fairly thin bench within Treasury, APRA, ASIC and RBA but I have had a number of calls with these bodies recently and it has been surprising to have so many crypto and digital natives asking the kinds of questions we get asked in Brussels, Singapore, Washington,” he said.
“So while the current regime may seem fairly fair or lacking, we think the government wants to look at regulation. We just wish it happened a little faster.
Coinbase has a tiered fee structure that splits the ticket on the “maker” and “taker” side. Makers – who provide liquidity – are charged between 0.05% and 0.6% per trade, while those who “take” liquidity are charged between 0.03% and 0.4%.
To establish the brand without confusion, Coinbase deliberately avoided offering a fee discount or flooding inboxes with free tokens, O’Loghlen said.
As it stands, Coinbase offers around 200 digital assets on its exchange, and O’Loghlen said the approval bar for tokens has gotten progressively higher over the years, with 90% of tokens asking for approval. approval being rejected.
“We have a much better understanding of what a sustainable token or business model looks like now,” he said.
“The last thing we want is for a roster to have some initial pop and then fade into nothingness. This is not a good look for the Web3 environment or for any of our retail, institutional, or Web3 businesses.
One of O’Loghlen’s concerns about Australian regulations relates to custody and the need for operators to store assets in the country.
“It’s something we’re concerned about,” he said, but added that Coinbase wouldn’t pull out of the market if such rules emerge.
Coinbase Ventures, the investment arm of the exchange, has made five seed investments in Australian crypto startups Immutable, CoFiX, Synthetix, Block Earner and CryptoTaxCalculator.
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Crypto Exchange Coinbase Seeks To Hitch ‘Whales’ As It Launches In Australia
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