5BMeaning of virtual asset

5B  Meaning of virtual asset

 (1) A virtual asset is a digital representation of value that:

 (a) functions as any of the following:

 (i) a medium of exchange;

 (ii) a store of economic value;

 (iii) a unit of account;

 (iv) an investment; and

 (b) is not issued by or under the authority of a government body; and

 (c) may be transferred, stored or traded electronically.

 (2) A virtual asset is a digital representation of value that:

 (a) enables a person to vote on the management, administration or governance of arrangements connected with a digital representation of value; and

 (b) is not issued by or under the authority of a government body; and

 (c) may be transferred, stored or traded electronically.

 (3) A virtual asset is a digital representation of value of a kind prescribed by the AML/CTF Rules.

 (4) However, the following are not virtual assets:

 (a) money;

 (b) a digital representation of value used exclusively within an electronic game;

 (c) customer loyalty or reward points;

 (d) a digital representation of value that is:

 (i) similar to a thing mentioned in paragraph (b) or (c); and

 (ii) not intended by the issuer to be convertible into another digital representation of value or money;

 (e) a digital representation of value prescribed by the AML/CTF Rules.

18  Subsection 6(2) (after table item 46)

| 46A | providing a virtual asset safekeeping service, where the service is provided in the course of carrying on a business as a virtual asset service provider | the customer of the service |

19  Subsection 6(2) (table item 50A)

Repeal the table item, substitute:

| 50A | exchanging, or making arrangements for the exchange of:<br>(a) a virtual asset for money (whether Australian or not); or<br>(b) money (whether Australian or not) for a virtual asset;<br>for a person, in the course of carrying on a business as a virtual asset service provider | the person whose virtual asset or money is exchanged |

20  Subsection 6(2) (after table item 50A)

 

| 50B | exchanging, or making arrangements for the exchange of, a virtual asset for another virtual asset (whether or not of the same or a different kind) in the course of carrying on a business as a virtual asset service provider | the person whose virtual asset is exchanged | | 50C | providing a designated service mentioned in another item of this table in connection with the offer or sale of a virtual asset, where the service is provided in the course of carrying on a business participating in the offer or sale | the customer mentioned in the item |