The Government of Australia plans to put together a comprehensive framework for crypto service providers in early 2023.
Providing protection to digital currency users
The government wants to do this in the first instance to offer users of digital currencies better protection. The regulatory process will encompass a range of activities, from the registration and licensing of crypto service providers to the implementation of anti-money laundering and anti-terrorist financing measures. The country’s Minister of Financial Services, Stephen Jones, said the following about the preparation on the regulation:
The next steps in the government’s ongoing “token mapping” work include the publication of a consultation paper in early 2023 to inquire which digital assets should be regulated by financial services laws, and the development of appropriate custody and licensing institutions to protect consumers.
Promote customer safety
The regulations are designed to promote customer safety in Australia. This includes requiring crypto service providers to obtain licenses to operate in the country. In order to obtain such a license, a company must in turn meet a list of requirements.
Australia is certainly not the only country that now wants to take measures to better protect crypto users in their country. Worldwide, the crypto industry is being extensively examined and action is now being taken where necessary. This in itself is not a bad thing. For example, it also offers companies that comply with it more legitimacy and reliability.
Although no exact date has been announced for Australia to have its regulations ready, it will not be very long in coming.