Australia reforms crypto regulations as part of payments industry overhaul

• Australia intends to form a licensing framework for the digital market.
• The state is also considering creating a retail central bank digital currency.

Australia is considering a central bank-issued digital currency to reform the crypto market. They want to update their payment system in a quarter of a century. Treasurer Josh Friedenberg is expected to elaborate on the reforms. The changes will give him more powers. Currently, the country has rules developed about three decades ago.

The state will also expand its payment laws to cover online transaction providers. These firms include Apple Inc, Google Alphabet Inc. and buy-now-pay-later (BNPL) service providers such as Afterpay Ltd.

Australian payment systems update

The state will advise us on a public digital version of cash. At the same time, he will consider regulating the digital market through a better licensing system. This will stop platforms from running without direct control.

The government will disclose digital assets to upgrade and modernize Australia’s payment systems. In addition, a comprehensive plan for payments and cryptoassets will put the state at the forefront of global competition.

The rules will identify services and products that can be regulated. According to Frydenberg, digital assets will be in the highest universal regulatory framework. This was stated by the treasurer in an interview with 7NEWS Australia.

Cryptocurrency trading platforms will protect their clients through compulsory licensing. The government will also develop a clear plan for licensing crypto exchanges. They will do so in 2022 according to the Australian Financial Review.

Stay on top

The Treasury will cooperate with the central bank on the digital currency. A few months ago, a spokesman for the Reserve Bank of Australia said the state did not have a strong case for a CBDC. Frydenberg said the country needs to stay ahead as global crypto assets are now worth $2 trillion.

They need to use new technology. The central bank will create a CBDC to stay ahead of global competition.

Nearly one million Australians reportedly own digital assets. However, this is a very low figure, as the figure is just under 5% of the population. Frydenberg notes that the new reforms will keep them at the forefront of innovation.

He believes that if Australia accepts these developments, it will open the door to greater opportunities. They will benefit from the convergence of finance and technology.

The Australian Senate created a committee to investigate crypto rules earlier this year. At the end of October, the team presented a report to the deputies.