Australia will put a comprehensive framework together in early 2023 in which rules will be established for regulating crypto service providers.
The Australian government is expected to regulate crypto service providers, in an effort to provide stronger protection for digital currency users. This regulation will encompass a range of activities, from the registration and licensing of crypto service providers to the implementation of anti-money laundering and counter-terrorism financing measures.
According to MP Stephen Jones, Minister for Financial Services, in a joint media release, the preparation for regulation will be along the following lines:
“The next steps in the Government’s ongoing ‘token mapping’ work will include the release of a consultation paper in early 2023 to inform what digital assets should be regulated by financial services laws, and the development of appropriate custody and licensing settings to safeguard consumers.”
The new regulations should ensure that customers are properly protected when using cryptocurrency services within Australia. The regulations are intended to promote customer safety by requiring crypto service providers, such as exchanges and wallets, to obtain licences in order to operate in the country.
The move reflects a growing trend among governments worldwide of placing greater oversight on the cryptocurrency industry. It also gives greater legitimacy and trustworthiness for Australian businesses dealing with digital currencies by making them subject to transparent regulatory oversight.
The proposed regulatory changes will not be imposed straight away, and a consultation will go out in early 2023 in order to take the views of all stakeholders first.
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