Australia Will Tackle the Regulation of the Crypto Industry

It seems that the FTX collapse caused many governments to rethink their strategies regarding cryptocurrencies. The United Kingdom already has its multi-year plan ready, and Spain announced that they would be creating a “sandbox” to isolate the crypto sector from the economy.

The latter is a way to test some products and features of the digital economy before making them publicly available.

Another big announcement comes from the opposite side of the globe as Australia aims to change its approach to handling cryptocurrencies and other digital assets.

The government has ideas about the framework

Stephen Jones, the Minister for Financial Services and Assistant Treasurer, together with Jim Chalmers, the MP and Treasurer, made a strong claim saying that the current architecture of the regulatory system is lackluster.

The government needs to implement new instruments and create a serviceable framework within which these instruments will be used.

Representatives of the government criticized the approach of their predecessors and said that the country must create efficient laws protecting citizens from potentially fraudulent activities.

The current priority is to define digital assets and tokens to find out which of them should be subjected to financial services laws. The mapping process is still ongoing with the first announcement about its goals made public in August 2022.

The country plans to roll out the first important regulatory mechanisms in the first quarter of 2023, allowing financial service providers to receive licenses under the new law. The nation is getting ready to tackle many challenges presented by the evolving crypto industry and wants to be a part of the future digital economy.

Australia says that CBDC is coming

The pilot version of the central bank digital currency in Australia is expected to be issued in the middle of the next year when the regulatory mechanism will be in place. It is a good thing that nation’s lawmakers see what is happening in the US and want to implement preemptive measures against such incidents.

Hopefully, Australia will become yet another crypto hub where the interests of users are prioritized, and the government will have a framework to deal with various bad actors within the industry.

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