According to the newest declaration by Australia’s Treasurer, Josh Frydenberg, the Australian Government is ready to embrace the new digital trend in order to profit from the convergence of finance and technology. The new legislation will encourage industry innovation, opportunity, and openness. The objective is to create a framework that broadens the scope of regulated services and goods while also bringing cryptocurrencies and digital assets into the mainstream.
“We want to bring cryptocurrency out of the shadows and into a well-thought-out regulatory framework.” “We welcome buys and sales,” Frydenberg says.
As the restrictions take effect, organizations dealing with cryptocurrency will be required to get a license to safeguard their customers’ safety and security. This will provide a fair playing field for new market entrants. “Greater competition is better for the customer because it expands options and, obviously, more innovation,” he says.
A Central Bank Digital Currency (CBDC) is also in the works. The government is investigating its viability, with advice expected by the end of 2022.
The most significant payment change in 25 years
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“Our payment system is undergoing a digital transformation.” Cheques and cash are no longer accepted. We now have digital wallets and digital currencies, which are quickly becoming the standard. “In the previous 25 years, the regulatory framework has not kept up with digital innovations,” Frydenberg observes.
In October, the Australian Senate Committee issued a series of proposals to regulate the digital asset and fintech industries. This includes market licensing for digital asset providers, digital asset custodial agreements, and a regulatory framework for DAOs.
These ideas are addressed in the most recent announcement. A custody or depository regime for firms that handle crypto assets on behalf of customers will be examined to inspire trust in investors. The government will discuss with the Council of Financial Regulators and other relevant organizations the underlying reasons and policy solutions to the complicated problem of de-banking.
Also, following careful research, how Decentralised Autonomous Organisations (DAOs) may be accommodated into Australia’s legal and financial regulatory frameworks will be examined. While laws that strike a balance between the interests of consumers and companies without limiting innovation are being considered, no mention of a tax break for bitcoin mining was made.
