Australian Crypto Regulation May Come into Force in 2023! In light of the troubling events that have occurred in the crypto market over the past few weeks, the Australian government has decided to tighten crypto security and regulation.
Treasury Australia is looking for a regulatory framework
According to the island’s Department of Finance, changes are needed to modernize Australia’s financial system to meet future challenges. According to the Treasury report, the process for the licensing and regulation of crypto service providers will be established in 2023.
The Australian government has announced that it will publish the advisory in early 2023. This will help regulators decide which digital assets should be regulated by financial services law. The advisory will also provide details on appropriate retention and licensing procedures to protect consumers.
Pursue innovation through the right process
Australian Treasurer Jim Chalmers said in a statement that the government would review its ongoing model mapping project before introducing any legislation. Chalmers added, “Our goal with the change is to start addressing this issue in pursuit of a strong and secure financial system.”
The Treasurer acknowledged the opportunities and risks associated with recent technologies such as blockchain. According to him, the Australian government intends to promote innovation while ensuring that investors are protected with appropriate regulations in place.
CBDC and stablecoins in Australia
The proposed advisory document will address various aspects of the crypto ecosystem, including stablecoins and central bank digital currencies (CBDCs). Australia’s central bank CBDC is currently in pilot phase and is expected to be completed by mid-2023. The Reserve Bank of Australia released a report earlier this month that discussed stablecoins.
The report concluded that “stablecoins can improve the efficiency and effectiveness of payment methods and other financial services.” This comes as an optimistic view, given the current climate in the crypto industry.