Australia: Crypto Regulations To Amplify In 2023

Lavina Daryanani
Source: PayBito

Australia is looking to alter its crypto regulatory landscape. On Wednesday, it revealed changes to its financial services laws that will “tighten safety nets” on the crypto market.

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The government plans to release a consultation paper early next year to help decide which digital assets will be regulated by laws. The government said that its paper will form the basis of a new “strategic plan” for the payments system to be passed in the first quarter of 2023. Additional changes in other areas, also expected next year. Among other areas, the government is reportedly taking steps to improve the regulations of crypto providers.

Areas of Focus: Crypto Custody, Licensing

A recent report from Bloomberg noted,

“The government is also considering cryptocurrency custody and licensing settings to safeguard consumers and is expected to consult on a framework for that next year before introducing legislation.”

The government, as such, will first consult on this next year before introducing legislation.

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A regulatory framework is to be set up for the “buy now, pay later sector” as well. Reportedly, that will make it easier for companies to find out whether or not they require a license.

Treasurer Jim Chalmers acknowledged that the country’s regulatory frameworks “haven’t kept up” with the fast-moving, dynamic financial landscape. He said,

“The digital age has brought new opportunities and risks to finance. Our plan is about opening up space for further innovation while making sure we have the right regulatory approach in place to keep consumers, businesses, and the system safe.”

Chalmers added,

“Our reforms are about starting to fix that in pursuit of a financial system that is stronger and more secure.”

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