Australia is gearing up to establish a regulatory framework for the cryptocurrency sector, mirroring the approach taken by the UK.
The government has officially launched a public consultation, scheduled to conclude on December 1, 2023, to seek input on this crucial initiative.
The primary objective is to develop a framework that safeguards consumers from potential harms within the crypto ecosystem while simultaneously fostering innovation.
This move marks a significant milestone in the Australian government’s ongoing efforts to reform the country’s crypto landscape. The proposed regulatory framework is intended to cover entities that offer access to digital assets and hold them on behalf of Australian individuals and businesses. It seeks to extend the same level of oversight and protection as the traditional financial system.
To ensure consistency in regulation, the government plans to integrate digital asset platforms within the existing Australian financial services framework. The framework aims to address risks posed by these platforms and maintain robust consumer safeguards.
In the pursuit of a comprehensive regulatory approach, the government has segregated cryptocurrencies into two categories: account-based systems and token-based systems. You can review the full proposal paper and share your thoughts on the framework by visiting the official government document [link]. Your input can help shape the future of crypto regulation in Australia.
