Australia to Introduce New Regulatory Laws and Licensing Frameworks for Crypto Firms

As some top economies across the world are working to bring clarity on crypto regulations, Australia joins the bandwagon. As per the latest report, Australian lawmakers will soon create a licensing framework for cryptocurrency exchanges.

Australian Treasurer Josh Frydenberg has recently welcomed this move saying that Bitcoin and other digital assets would emerge under a financial licensing scheme for crypto trading platforms. Speaking of this development, Mr. Frydenberg said:

“Australia has an opportunity to be among the leading countries in the world in leveraging this new technology. Recent surveys have found that up to 17 percent of Australians currently own cryptocurrency, with that figure likely even higher among young Australians.”

The Australian Treasurer said that he will begin talks on the licensing framework of crypto from early 2022. Besides, they will also be regulating crypto custodians i.e. businesses who hold digital assets on behalf of their consumers.

Crypto businesses in Australia are also supporting this move. BTC Markets chief executive Caroline Bowler said: “It would be a crushing shame to not have our regulation keep pace with international peers such as Singapore, Canada and Britain”.

Australia’s Own Central Bank Digital Currency (CBDC)

Australian Treasurer Josh Frydenberg also spoke about the possibility of having a central bank digital currency (CBDC) and doing pilot testing before the end of 2022. However, he advocates for the cash industry saying that the Australian CBDC should be replacing physical banknotes.

Besides, the country is looking to broaden the scope of laws for online transactions providers. Tech giants like Google and Apple are making rapid penetration in the payments market. Furthermore, there’s a fast emergence of buy-now-pay-later (BNPL) providers ike Afterpay Ltd. operating without any direct supervision. Speaking of this, Treasurer Frydenberg said:

“If we do not reform the current framework, it will be Silicon Valley that determines the future of our payment system. Australia must retain its sovereignty over our payment system.”