Cryptocurrency: Australian Government Acting “Swiftly” To Protect Consumers

Lavina Daryanani
Source: PayBito

In December, Watcher Guru reported that Australia was looking to alter its cryptocurrency regulatory landscape and amplify the rules. The government announced that it will release a consultation paper in early 2023 to help decide which digital assets will be regulated by laws.

Regulators said that its paper will form the basis of a new “strategic plan” for the payments system. Among other areas, the government was reportedly taking steps to improve the regulations of cryptocurrency providers.

Now according to sources, Australia is now looking to provide the securities regulator additional resources, including manpower, to oversee the cryptocurrency ecosystem in the nation.

Also Read – Australia: Crypto Regulations To Amplify In 2023

Other regulatory facets

In a statement on Friday, Treasurer Jim Chalmers revealed that the Australian Securities & Investments Commission [ASIC] is expanding its digital asset team and enforcement measures. Additionally, the Australian Competition & Consumer Commission [ACCC] is also bolstering its efforts to put a cap on scams involving cryptocurrency ransom demands.

The statement highlighted how “more scammers” are seeking payment via this novel asset class. Losses reported via the cryptocurrency payment method totaled up to $221 million in 2022.

The government is also looking to reform the licensing and custody of crypto assets. Chiefly, the focus will remain on the subset of cryptocurrency assets that currently fall outside the financial services regulatory framework. Chalmers’ statement noted,

We will establish a set of obligations and operational standards for crypto asset service providers to ensure they adequately safe‑keep assets for customers.

Furthermore, the regulator clarified that the consultation on the design of a custody and licensing framework will begin in “mid‑2023.” Alongside, the Australian Treasury released its token mapping consultation paper a day back. The same intends to determine which elements of the cryptocurrency ecosystem will be regulated.

“Protecting consumers, protecting our financial system, and cracking down on criminals” are the three reasons why the government is taking action on crypto.

Also Read: National Australia Bank to Launch Stablecoin on Ethereum Network, Algorand Blockchain

Australia adopts “multi-stage” approach to cryptocurrency regulation

In conclusion, the country is adopting a “multi-stage approach” involving three elements. Specifically, they include strengthening enforcement, bolstering consumer protection, and establishing a framework for its token mapping reform.

The treasurer said that the previous government dabbled in crypto policy but never took the time to future‑proof their regulatory frameworks. However, he added,

We are acting swiftly and methodically to ensure that consumers are adequately protected and true innovation can flourish.

Also Read: Is XRP Australia’s New Favorite Cryptocurrency?