February 25, 2024

The Australian government is looking to regulate cryptocurrency activities as part of major changes to the country’s payment services.

The Australian Minister of Digital Economy, Jane Hume, revealed that the government plans to provide Australians with a safe platform to invest in and hold crypto assets by introducing a cryptocurrency operation framework for digital asset exchanges.

The new proposed regulations also include crypto taxation, investors’ protection, and privacy, digital exchange regulations, and laws governing the conduct of transactions in the digital space.

According to Hume, the latest market license framework is geared towards sending a message to the public that, rest assured, they should be able to trust the digital currency services that they are transacting with. The government will scrutinize all crypto businesses in Australia via the badge of approval issued by the government.

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The proposed new law will be revealed to the public as part of the government’s policy paper targeting the digital financial ecosystem.

Upgrading the Australian Payment System

The country’s treasurer, Josh Frydenberg, had previously hinted to the public about the upcoming reforms last December. According to Frydenberg, the government aims to make the most impactful updates to the payment system in Australia in the years to come.

The government’s treasurer further added that the world is moving at jet speed, and even the financial sector is not left out of this change. If the country fails to carry out any significant reform of its payment system, Silicon Valley can also control Australia’s payment system.

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Additionally, the government has been exploring and evaluating how it can enact laws to regulate cryptocurrency exchange platforms. Frydenberg disclosed that the government has a plan to safeguard the funds of cryptocurrency investors and make such funds accessible to them.

Building Growth and Fidelity

The minister of the digital economy further disclosed that the role of the government is to accelerate the growth of the crypto space in the country and build trust between investors and the exchange platforms.

Meanwhile, the first financial institution to register its interest in venturing into the crypto market is the Commonwealth Bank of Australia. 

Last November, the bank announced that it would soon provide its customers with the option to buy, store, and sell cryptocurrency via its mobile bank app accessible via smartphone.

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Sophie Gilder, Director of Blockchain and digital assets in the bank, reiterated that the increasing adoption of crypto influences the bank’s drive to incorporate digital assets into its operations by its client base.

Gilder further stressed that more than 500,000 of the bank’s customers are transferring funds to crypto exchanges, which shows how active they are in cryptocurrency transactions.

However, the government’s treasurer noted that regulatory frameworks need time to settle, and the government’s backing will aid this by ensuring strategic planning and directions are followed.

He further added that the government’s holistic financial payment and cryptocurrency reform would position Australia as one of the leading crypto-friendly ecosystems in the future.

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