The Australian government has announced that it will regulate cryptocurrency operations in the country. An announcement that has been hailed as the most important for the country’s payment system in 25 years, would see actions taken that will enable cryptocurrencies to be used in paying taxes and more. The anticipated regulation will also usher in robust protective measures against unscrupulous players in the industry.
This was revealed by the Australian news site, The News Australia. According to the release, brokers, cryptocurrency exchanges, and digital banks will all come under the searchlight as the government moves to harmonize its operations.
The latest move by the Australian government comes after a recommendation by Senator Andrew Bragg, whose report in the parliament found that current regulations fall below expectations.
Making Australian Exchanges Safer
Speaking during a session on Sunday, March 20, Jane Hume, the Financial Services Minister, said that there are no guarantees from the government that the cryptocurrencies that citizens possess are safe investments, just as it is difficult to give such guarantees to someone who bought a painting or the stock of a company.
“But we can make sure Australian exchanges, custodians and brokers – Australian players in the crypto ecosystem – work within a regulatory framework that is better, safer, and more secure,” she said.
Last December, Josh Frydenberg, the Treasurer said that the government would make some of the biggest changes in the sector, indicating that a massive regulatory action for the country’s payment system was underway.
Consultation With Industry Players
The report made it clear that the government already has mapped out steps that will ensure that an all-inclusive guideline is made available to operators within the cryptocurrency space. Three key releases are expected on Monday, March 21, which will initiate widespread consultations with operators. The reforms from such brainstorms will lead to policy implementations that are expected by the end of the year.
One of the documents will seek inputs from industry experts, operators, and other stakeholders on the mode of custodial services for digital services and the approach for licensing for exchanges. The development of an encompassing licensing regime is of utmost importance to the government, the report states.
The government will also release terms of reference for two regulatory agencies, the Australian Competition and Consumer Commission and The Council of Financial Regulators (CFR). While a third agency, The Board of Taxation (BoT) will review the mode of taxation of cryptocurrencies in the country.
