Australian Government Working On Crypto Regulation For Protecting Consumers

The Australian government has said that it would ensure consumers are protected under the regulations developed for crypto assets.

One of the steps it would take to accomplish this goal is to reform the custody and licensing of crypto assets in the country.

The government led by Anthony Albanese also stated that they have issued a consultation paper that highlights the aspects of the crypto ecosystem that are properly regulated and those that need attention.

Consumer protection

The country’s government recently asserted that its priority was to ensure crypto assets are regulated in a manner that protects consumers.

At the same time, it wants to ensure that the Australian economy can reap the benefits of new digital products and services.

The Aussie government said that it would achieve this goal by reforming the licensing and custody regime of crypto assets.

The government also added that they would give special attention to the category of cryptocurrencies that are not currently part of the financial regulatory services framework in the country.

On February 3rd, the government issued a statement in which it disclosed that it was also planning on introducing operational standards and a set of obligations that would apply to crypto asset service providers.

The statement further disclosed that the purpose of introducing these standards would be to ensure that the digital funds of customers can be safeguarded.

More work

As far as the framework for licensing and custody of crypto assets is concerned, the government stated that a public consultation process will be initiated in mid-2023.

It said that this would give enough time for consultation before proper legislation is introduced in the country.

Prime Minister Anthony Norman Albanese’s government also said in the statement that they had taken immediate steps for ensuring consumer protection.

However, they added that there was more work that had to be done. It said that the consultation paper that they have released would explore what aspects of the crypto aspects need attention and which ones are sufficiently regulated.

It said that this would assist the government and other stakeholders in focusing on the gaps in the regulatory framework and ensure that they can identify and control emerging risks.

More details

The statement further said that while they were willing to work with stakeholders, the Aussie government wants to get it done in an orderly manner.

It said that this would help the government in developing the right policies for protecting consumers and also supporting innovation in this growing sector.

Other than the regulatory framework for licensing and custody, the Australian government disclosed that steps have already been taken for ensuring consumer protection.

This includes expanding the size of the crypto team of the Australian Securities and Investment Commission (ASIC).

Some of the other steps that they have taken include putting a stop to crypto scams, along with identifying potential terrorism financing and money laundering activities in the sector.

The government’s focus on crypto regulation has heightened after the FTX fiasco that has grabbed the attention of global regulators.

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