Australia plans to regulate cryptocurrencies. The country will introduce a licensing system for cryptocurrency exchanges. Moreover, the country will also introduce Central Bank Digital Currency.
Australians have started using non-cash payment methods massively during the pandemic. Almost 55 Million transactions are made in a cashless system every single day in the country. Australia is also at the forefront of cryptocurrency activities. According to Government’s data, crypto transactions have increased 63% this year.
Treasurer Josh Frydenberg is a proponent of reforms. He has proposed a framework underlining why Australia plans to regulate cryptocurrencies?
“If we do not reform the current framework, it will be Silicon Valley that determines the future of our payment system. Australia must retain its sovereignty over our payment system.”
All popular online transaction providers such as Apple Inc. , Google and Afterpay Ltd, will be subjected to payment laws in Australia. The Australian payment industry is worth A$650 billion a day.
Australia intends to regulate the digital currency market just like China and India. However, the country is taking a much more inclusive approach than the latter two.
Also Read: Crypto Ban in India – The FUD and Reality
The development of licensing framework for digital exchanges will start with a consultation phase in early 2022. Moreover, the feasibility of central bank digital currency will be given due consideration.
Australia’s former government adviser on cryptocurrency, Chloe White, called the move a “timely and sensible response”. He also opined that Industry participants will be Enthusiastic about working through the details.
Crypto exchanges are thriving in Australia with the population’s positive attitude towards crypto assets. With the regulation laws, the Australian government intends to provide legitimacy to exchanges.
Crypto regulations are tightening across the globe. Nevertheless, crypto adoption is on the rise. It is considered people’s money and a hedge against inflation.