According to the Australian government, it is working to ensure that crypto assets are regulated to protect consumers and to position the economy to take advantage of the new digital products.
The Australian government stated that it will’reform licensing and custody of cryptocurrency assets’ to achieve these goals. The government stated that a small number of cryptocurrencies will receive special attention, as they are currently not covered by the financial services regulatory framework.
The Anthony Norman Albanese-led government issued a statement on February 3. It stated that it intends to place crypto asset service providers under what it calls “a set of operational standards and obligations”. These standards are meant to protect customers’ digital assets, according to the statement.
The Australian government stated that it would open a public consultation in mid-2023 regarding the design of a licensing and custody framework. This will allow sufficient consultation before legislation is introduced.
Recognizing and controlling emerging risks
In the same statement, Prime Minister Albanese stated that while his government has taken immediate steps in order to protect consumers, it still needs to do more. The government also added:
Today’s consultation paper examines in detail which aspects of the crypto ecosystem have been adequately regulated. This consultation paper will allow the government and other stakeholders to identify and control emerging risks and focus on regulatory gaps.
In the statement, it was also stated that while the Australian government is open for collaboration with stakeholders, it still wants this to be done in a structured manner. This allows the government to “get the policy settings right in order to protect consumers and foster innovation in this emerging sector.”
The Australian government stated that it had already taken steps to protect consumers, in addition to the proposed crypto custody and licensing framework. These include increasing the size and expertise of the crypto team at the Australian Securities & Investments Commission. Other steps include detecting money laundering and terrorism financing, as well as stopping scams.