What is the Australian Digital Currency Industry Code of Conduct?
The Australian Digital Currency Industry Code of Conduct is an audited, self-regulatory scheme that allows Australian digital currency exchanges to prove to consumers that they met strict best-practice standards in the operation of their businesses.
Australian consumers doing business with a Blockchain Australia Certified digital currency exchange can be confident that the exchange meets best practice standards in the following areas:
- legal compliance
- reputation and background of the exchange owners and operators
- anti-money laundering and counter-terrorism financing protections and reporting
- consumer protection including:
- transparent pricing
- dispute resolution processes
- data security
How Can I Confirm that a Digital Currency Exchange has been Certified by Blockchain Australia?
A digital currency exchange that has current certification from Blockchain Australia that it is fully compliant with the Australian Digital Currency Industry Code of Conduct is entitled to use the following Trustmark on its website to confirm certification.
All exchanges that are Certified by Blockchain Australia as compliant with the Australian Digital Currency Industry Code of Conduct are also listed on this page of Blockchain Australia website.
Any exchange that is displaying this Trustmark on their website, or in any other way implies that it has been certified by Blockchain Australia as compliant with the Code of Conduct, that is NOT listed on the Blockchain Australia website is engaging in deceptive and misleading conduct.
How is Compliance with the Australian Digital Currency Industry Code of Conduct Confirmed?
A digital currency exchange applies the following process to confirm compliance with the Australian Digital Currency Industry Code of Conduct:
- Appoint an Independent Auditor
A digital currency exchange seeking Blockchain Australia Certification under the Australian Digital Currency Industry Code of Conduct must first nominate an independent and professionally competent external auditor. The proposed auditor must be approved by Blockchain Australia’s Financial Crimes/CTF Committee.
- Collect Evidence of Compliance
The external auditor will then conduct a review of the exchange’s policies and procedures to ensure compliance with the Code of Conduct using the formal checklist contained in the Code. The auditor is required to collect evidence to prove ongoing compliance.
- Auditor’s Certification and Explanation
Once satisfied, the independent auditor provides a formal letter of certification to the Blockchain Australia Financial Crimes/CTF Committee confirming that all the requirements of the Code of Conduct have been satisfied. A meeting between the Auditor and the Financial Crimes/CTF Committee is convened to allow the checklist to be reviewed and for any questions to be resolved.
- Financial Crimes/CTF Committee Certification
Once satisfied with the auditor’s report and response to any questions, Blockchain Australia’s Financial Crimes/CTF Committee provides formal certification that the exchange satisfies the requirements of the Code of Conduct.
One year after first being certified, a digital currency exchange must once again complete and submit the compliance checklist along with a letter formally self-certifying that they continue to meet the code requirements. Two years after first being certified, a full new external audit and certification is required to maintain certification.
Exactly What are the Obligations of an Exchange Under the Australian Digital Currency Industry Code of Conduct?
Download the full text of the Australian Digital Currency Industry Code of Conduct