The regulatory proposal is part of a strategy by the Australian government to digitize its payments platform and infrastructure. Australia also considers a CBDC.
The Australian government is preparing to introduce a regulatory framework for digital currencies amid a larger reform to the country’s payment systems.
Josh Frydenberg, Australia’s Treasury Minister, revealed this week that the regulatory framework will introduce licenses for cryptocurrency exchanges that work locally. He also revealed that the Treasury is working alongside the central bank to manage a central bank digital currency (CBDC).
The plans are part of a strategy to modernize Australia’s payment systems, which is said to be the largest reorganization of the Australian payments system since the 1990s. Frydenberg said the reforms “will firmly place Australia among a handful of leading countries in the world. “
New Framework for Regulating Cryptocurrencies
In an interview with a local media, the minister highlighted that the new regulations will broaden the definition of services and products that can be regulated. Companies that acquire and sell cryptocurrencies would need to have a proper license to bring more security to users.
The minister also added that, for consumers, these changes would set up a regulatory framework to support their growing use of crypto assets and clarify the treatment of new payment methods.
According to Reuters, the Australian government would start consultations on setting up a licensing framework for digital exchanges in early 2022. It would also consult on regulating companies that work with cryptocurrencies on behalf of their clients.
Australia Now Considers a CBDC
The treasurer also highlighted the government’s strategies to issue a CBDC. Frydenberg’s statement came a day after an unidentified high-level government source advanced to The Australian on Tuesday that a Bitcoin or cryptocurrency backed by the RBA is currently a subject of discussion and will be a key element of regulatory reform.
In October an official at the Reserve Bank of Australia announced that the central bank was accelerating its development to stay ahead of global competition, although they did not see strong arguments for a CBDC in Australia.
According to Cointelegraph, the reform plan comes shortly after an Australian Senate Committee tabled various proposals around cryptocurrency regulation in September. The proposals added the addition of licenses for crypto exchanges, an overhaul of sector taxes, and new laws to govern decentralized autonomous organizations (DAOs).
The Australian government appears to be in favor of most of the proposals put forward by the Senate Committee; Although he has rejected a project related to reducing taxes on Bitcoin mining that use renewable energy, according to that medium.
The announcement about the new regulation comes at a time when digital currency adoption is growing strongly in Australia. A recent survey revealed that the number of Bitcoin holders in the country has increased, especially among the female population.
On the other hand, the Minister of Financial Services, Pensions and Digital Economy of Australia and senator, Jane Hume, acknowledged a few weeks ago that cryptocurrencies are not a trend.
By: Jenson Nuñez
