With the government revealing plans for a comprehensive revamp of payment system reforms that will also target digital currencies, Australia has joined the list of countries aiming to regulate the cryptocurrency business.
According to News Australia, the proposed legislation will primarily focus on crypto taxation, investor protection, and regulation of digital banks and exchanges.
Moreover, Jane Hume, the country's minister of financial services says that the government wants to ensure that all crypto participants operate inside a regulated environment as the use of various assets grows.
“The government can’t guarantee your crypto any more than it can guarantee a painting or a share in a company, and nor should it. But we can make sure Australian exchanges, custodians and brokers work within a regulatory framework that is better, safer and more secure.”
Australia's desire to regulate cryptocurrency became public in 2021 after Treasurer Josh Frydenberg stated that new rules would be announced.
In accordance with the proposed regulations, the government will release three key documents aimed at reforming the payment sector. One paper tries to gather feedback from key actors on licensing and custody of digital assets.
One of the Treasury's ideas was to force crypto exchanges to keep the assets of Australian investors onshore.
In addition, the paper will expose the findings of two crypto-related investigations, as well as the terms of reference. Australia's competition and financial agencies are looking into the matter.