The Australian government plans to regulate the cryptocurrency sector in an effort to make it safe for its citizens to invest “safely and securely”. It will focus on crypto taxation, regulation of digital banks and exchanges, and investor protection.
Jane Hume, the Minister for Digital Economy, highlighted that this is the government’s signal for Australians can trust the crypto services. She said the crypto businesses in the country will receive verification in the form of an “Australian-made badge of approval”. The government wants to make sure that exchanges, custodians, and brokers, basically the Australian players in the crypto ecosystem work within a regulatory framework that is better, safer, and more secure.
The minister outlined that the government wants to make sure that consumers can trust the exchanges that they use to buy cryptocurrency. Speaking at the Blockchain Australia event, Hume pointed out that crypto values will go up and down sure as eggs. The government cannot protect consumers from market volatility but it can see that there are licensed Australian exchanges.
Hume revealed that there will be a uniquely Australian stamp of quality. Authorities will ensure that crypto investors can always access their money. The government will introduce custody requirements for crypto assets to make it happen. She said they have been urged to shoehorn crypto into the financial products regime. However, the minister pointed out that crypto-assets don’t require the government to assure trust in the same way that financial products do.
It should be noted that crypto assets have a lot more transparency. It doesn’t generate the same potential harm as financial products. As such, the Australian government will not regulate them in the same way. But if an intermediary is introduced, then a trust requirement is needed. The government will assure trust.