Australia proposes new crypto laws, BNPL. To modernize its A$650 billion-per-day ($463 billion) payments industry. Australia will establish a licensing system for cryptocurrency exchange operators. And contemplate establishing a retail central bank digital currency. As part of the country’s largest revamp in more than a quarter of a century.
It will also expand its payment regulations to include online transaction providers. Like as Apple Inc (AAPL.O) and Alphabet Inc’s (GOOGL.O) Google. As well as buy-now-pay-later (BNPL) providers such as Afterpay Ltd (APT.AX). Effectively putting an end to their years of operating without government control.
During a speech, Treasurer Josh Frydenberg stated that “if we do not modify the current framework. It will be Silicon Valley that determines the future of our financial system.” Australian sovereignty over our financial system must be preserved, says the government.
As part of a global attempt to reign in giant technological companies. Australia’s conservative government is pursuing a more inclusive stance. Than countries such as India and China. Which have criminalized cryptocurrency trading.
During the epidemic, the use of cryptocurrency and non-cash payments has skyrocketed in Australia. As people’s lives have increasingly moved online.
According to government data, around 55 million non-cash payments are made in Australia every day. With nearly half of the population using their phones to make payments. When compared to the same period last year, the number of Australians. Who have transacted in cryptocurrency has increased by 63 percent this year.
Deputy Prime Minister Josh Frydenberg announced that the government would begin consultations. In early 2022 on the establishment of a licensing framework for digital exchanges. Which would also allow customers to purchase and sell cryptocurrency assets in a regulated environment.
Frydenberg went on to say that the government would consult on regulating enterprises. That store cryptocurrency assets on behalf of consumers. As well as on the possibility of a central bank digital currency, among other things.
Apple declined to comment, while Google did not immediately respond. To a request for comment.
In his statement, Gerard Brody, chief executive of the Consumer Action Law Center. Stated that regulating cryptocurrency exchanges would acknowledge that those firms. “Are now holding considerable quantities of people’s money and assets.”
Brody added in a statement that BNPL companies would “address the enormous danger of debt and also financial stress. Associated with these products” if they were properly regulated.
Chloe White, a former federal government adviser on cryptocurrencies who now leads Genesis Block. A consultancy firm that provides industry with guidance on digital asset regulation. And policy development, said Australia’s move was a “timely and appropriate response.”
“There will be a great deal of interest from industry participants. To be involved in working through the details,” White continued in an email. “
Australia’s approach is consistent with that of U.S. regulators, who have stated. That they also seek to develop a regulatory framework that will allow banks. To facilitate the ownership of crypto assets for their customers. Among other things and Australia proposes new crypto laws.
Regulators in the United Kingdom have sought for more powers to regulate. The internet promotion of cryptocurrency assets in order to counteract. A deluge of “problematic content.” click here to find out more
On the opposite end of the spectrum, India’s planned regulations would subject anyone. Who also uses cryptocurrency as a payment to jail without a warrant. While Chinese regulators have already imposed a ban. On both cryptocurrency transactions and cryptocurrency mining, respectively.