JUST IN: Australian government intends to release a consultation paper to assist determine which digital assets would be subject to legal regulation

Australia wants to change the way that cryptocurrencies are regulated. It disclosed amendments to its financial services rules on Wednesday that will “tighten safety nets” on the cryptocurrency industry.

Early in 2019, the government intends to release a consultation paper to assist determine which digital assets would be subject to legal regulation. According to the government, the document will serve as the foundation for a new “strategic plan” for the payments system that will be adopted in the first quarter of 2023. Also anticipated for next year are additional modifications in other areas. The government is apparently improving the rules governing cryptocurrency providers among other things.

Focus Areas: Crypto Custody and Licensing

According to a recent Bloomberg report;

“The government is also considering cryptocurrency custody and licensing settings to safeguard consumers and is expected to consult on a framework for that next year before introducing legislation.”

The government, as such, will first consult on this next year before introducing legislation.

The “buy now, pay later sector” will also require the establishment of a regulatory framework. It is said that it make it simpler for businesses to determine whether or not they need a license.

The nation’s regulatory structures “haven’t kept up,” according to Treasurer Jim Chalmers, with the dynamic, quick-changing financial environment. He stated:

“Finance now faces both new opportunities and risks thanks to the digital age. Our strategy is to create more room for innovation while putting the proper regulatory framework in place to protect customers, businesses, and the overall system. 

Chalmers added,

“Our reforms are about starting to fix that in pursuit of a financial system that is stronger and more secure.”