As part of a sweeping modernization of Australia’s payment systems, the Australian government will overhaul the regulatory framework around cryptocurrency exchanges. Noting that over 800,000 Australians have owned a form of cryptocurrency, Treasurer Josh Frydenberg said that the government is “broadening out the definition of the services and the products that can be regulated” in an interview with 7News Australia. Financial regulators worldwide are currently working on regulating cryptocurrencies.
Australian government will work on establishing a licensing framework for crypto exchanges.
According to the Reuters report, the Australian government will begin consultation on establishing a licensing framework for digital exchanges in early 2022 and consult on regulating businesses that hold crypto on behalf of their customers. “We’re taking this area out of the shadows and bringing it into a considered regulatory framework, which is world-leading,” said Treasurer Josh Frydenberg, adding that, “We want those businesses that are buying and selling cryptocurrencies to be properly licensed,” in order to “provide greater certainty and security to those people who are transacting in that area.”
Australia’s treasury will also work alongside the central bank on the CBDC.
Australia’s treasury will also work alongside the country’s central bank on its CBDC (central bank digital currency). US Treasurer’s announcement comes in the wake of the collapse of Australia-based crypto exchange MyCryptoWallet, which called in the firm SV Partners on Wednesday to liquidate its assets and deal with creditors. According to the Australian Financial Review, the announcement follows several months of reports that crypto exchange users were unable to access their funds. Earlier in October, Melbourne-based firm Blockchain Global Limited, operators of the crypto exchange ACX, collapsed into administration owing creditors $21 million, as per Sydney Morning Herald.