Authorities in Australia have commenced plans to unveil a clear regulatory framework for licensing and regulating crypto service providers in 2023. This development was made known in a press statement issued through the office of the minister of financial services in the country. According to the statement, the government, through the regulations, seeks to deliver reforms capable of modernizing the financial system in Australia.
Through the framework, the government, under the leadership of its prime minister, Anthony Albanese aims to clarify the digital assets that must be under the purview of the financial service laws. More so, the government plans to determine the rules, capable of safeguarding consumers from the risks enveloped in the industry. Worth noting that the authorities in Australia believes the initiation of this new regulatory framework tends to position the economy of the country to embrace new economic opportunities and respond to future obstacles.
As revealed, the Australian government plans to release a consultation paper in early 2023. This, according to the statement, will manifest as part of the government’s ongoing token mapping effort in the country. Through this paper, authorities want to define the category of digital assets that must fall under financial laws in Australia. Further, the paper would clarify the development of appropriate custody and licensing settings to protect investors.
Australia to complete consultation before initiating legislation on the framework
Meanwhile, the Albanese-led government is not planning to devise any legislation on the framework until it completes its consultation. However, beyond crypto, the government also wants to update and strengthen payment system in Australia through the framework. More so, it aims to strengthen the financial market infrastructure in the country. Similarly, the authorities look towards creating a regulatory mechanism for BUY NOW, PAY LATER activities. The Albanese government, however, promised to work closely with regulators, and industry consumers to get the reforms right.
Following the FTX crisis, many countries are now looking to devise a stricter regulatory framework to protect consumers. Recently, the financial regulator in Australia suspended the financial service license of FTX. According to an announcement by the Australian Securities and Investments Commission, the suspension of the license will linger till 2023. More so, the agency added that the suspension of FTX Australia’s license manifested after it was placed into voluntary administration. Although, the ASIC gave the FTX subsidiary in the country a privilege to offer financial services till December 19. But, it insisted that those services must relate to the termination of existing derivatives with customers.