Key takeaways:
- The Department of Treasury of the island nation claims that changes must be made to bring Australia’s financial system up to date.
- The government will seek input on issues pertaining to its continuing token mapping work.
The Australian government has taken steps to improve safety and regulation for cryptocurrency in response to the unsettling developments that have occurred in the market over the past several weeks.
As part of larger measures to reform the nation’s financial sector, Australia hopes to implement a new framework for governing cryptocurrency businesses next year.
Jim Chalmers, the treasurer, and Stephen Jones, the assistant treasurer, claimed in a statement that “regulatory architecture had not kept up with market changes, particularly the introduction of new digital products and services.”
In conjunction with authorities, industry, consumer, and business groups, the administration will unveil a Comprehensive Strategy for the future of Australia’s payments system in the first quarter of 2023.
The Government’s policy goals and intentions for the payments system are outlined in the Strategic Framework, which is a detailed, long-term policy that will also help organize decision-making between the Government and other stakeholders.
The Plan’s primary aims and priorities will be determined by the consultation paper, along with ways that it can be applied to improve industry-wide coordination of activity.
According to the declaration, the government’s next move will be to establish suitable licencing and custody agreements to safeguard consumers.
As explained previously by the Treasury, no other legislation in the world will be as well-informed as its approach. His strategy relies on “token mapping,” a type of market analysis that enables policymakers to determine how various assets and services should be governed.
Every aspect of business is undergoing a digital transition in Australia. The regulatory environment is still struggling to keep up with and adjust to the market for crypto assets.
According to Michael Bacina, a partner at Piper Alderman, the token mapping project will be a “important step” in bridging the vast knowledge gap between regulators and policymakers.
The government also unveiled measures to improve the nation’s financial sector infrastructure, modernise the nation’s payment systems, and control “Buy Now, Pay Later” services like Afterpay, Openpay, and Klarna.
The suggested consultation document will discuss several components of the cryptocurrency ecosystem, such as stablecoins and digital currencies issued by central banks (CBDCs). The pilot stage of the Australian central bank’s CBDC is now underway and is scheduled to end in the middle of 2023.
