Connect with us
Active Currencies 14771
Market Cap $2,545,197,356,518.00
Bitcoin Share 51.23%
24h Market Cap Change $-0.84

Australia is set to tighten crypto regulation in 2023, here’s how

2min Read
Australia is set to tighten crypto regulation in 2023, here's how

Share this article

In light of the worrying events that have transpired in the crypto market over the past few weeks, the government of Australia has moved to ramp up safety and regulation for crypto.

Australian Treasury seeks to set up a regulatory framework

According to the island nation’s Department of Treasury, reforms are required to modernize Australia’s financial system in order to respond to future challenges.

As per a press release by the Treasury, a framework for the licensing and regulation of crypto service providers will be established in 2023. 

The Australian government has also announced that it will release a consultation paper in early 2023. This will help regulators determine which digital assets should be regulated by financial services laws. The consultation paper will also provide clarity on appropriate custody and licensing settings to protect consumers. 

Further innovation with the right regulatory approach 

Australian Treasurer Jim Chalmers has clarified in his statement that the government will consult on matters relating to its ongoing token mapping work, before introducing any legislation. “Our reforms are about starting to fix that in pursuit of a financial system that is stronger and more secure,” Chalmers added. 

The treasurer acknowledged the opportunities and risks associated with a nascent technology like blockchain. According to him, the government of Australia plans to foster innovation while making sure that the investors are protected by proper regulations in place. 

CBDCs and stablecoins in Australia

The proposed consultation paper will address various elements of the crypto ecosystem, including stablecoins and central bank digital currencies (CBDCs). The CBDC of Australia’s central bank is currently in its pilot phase and is expected to conclude in mid-2023. 

The Reserve Bank of Australia published a report earlier this month that addressed stablecoins. The report concluded that “stablecoins have the potential to enhance the efficiency and functionality of a range of payment and other financial services.” This comes as an optimistic outlook, given the current climate in the crypto industry. 

Share

Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.