The government of Australia is planning to regulate cryptocurrencies as part of a broader reform of the country’s payment system.
Australia’s Minister of Digital Economy Jane Hume revealed that the government will “enable Australians to invest in crypto assets safely and securely” by introducing a market licensing framework for cryptocurrency exchanges.
Cryptocurrency taxation, investor protection from fraudsters, and measures to regulate digital banks, cryptocurrency exchanges and brokers are all covered in the proposed legislation.
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Hume explained that the new market licensing system serves as a signal to the public that they can trust the crypto services with which they engage, as Australian crypto enterprises are given so-called “Australian-made badges of approval”. will be verified through
On Monday afternoon, the new framework is to be released as part of the policy paper.
‘Rebuilding’ Australia’s payment system
Australian Treasurer Josh Frydenberg emphasized upcoming regulatory reforms in a December whitepaper, saying the Morrison administration aims to make the most significant reforms to Australia’s payment systems in the next 25 years.
“If we do not improve the existing guidelines, it will be Silicon Valley that will determine the fate of our payment system. Australia must retain sovereignty over our payments infrastructure,” Frydenberg said.
Additionally, the federal government is enacting legislation to establish custody agreements for cryptocurrency exchanges.
The crypto total market cap on the daily chart is $1.801 trillion. Source: TradingView.com
Hume explained that:
“We have a strategy in place to ensure that crypto investors who store their funds on exchanges can always access them by establishing custody standards for crypto assets.”
fostering growth and trust
According to Hume, the government’s role in promoting the growth of the country’s crypto economy is to ensure “trust” between crypto investors and exchanges.
Meanwhile, the Commonwealth Bank of Australia was the first to indicate its intention to enter the crypto market, announcing in November that it would offer customers the opportunity to buy, sell and store crypto assets using its mobile Combank app. will start doing This functionality is currently being tested in a pilot program.
Sophie Gilder, CBA’s Director of Blockchain and Digital Assets, said that the bank’s strategic decision to roll out crypto services is driven by the adoption of cryptocurrencies by its customers.
“At the time of writing, approximately 700,000 of our customers are actively transferring money to cryptocurrency exchanges, indicating that they are already active in this area. Our customers are already there, whether we are or not. “
Frydenberg noted that the bottom line of regulatory infrastructure requires adaptation, providing the government with strong strategic direction.
“Government-wide payments and crypto-asset reforms will strengthen Australia’s position as one of the world’s leading countries,” he said.
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Featured image of Euronews, chart from TradingView.com