As a result of the proliferation of scams and fraud in the cryptocurrency business, several nations' governments are attempting to protect their citizens. Authorities and lawmakers have been forced into action due to recent catastrophic events, such as the collapse of the FTX and the Terra, to find solutions to control the threat.
In light of the regulatory difficulties, the Australian government has increased security in the crypto area. These steps may be found in the following sentence. The government has revealed that it intends to strengthen the restrictions that apply to cryptocurrency companies.
In addition, the government intends to publish a consultation document in 2023 to assist them in making judgments regarding the digital assets they wish to regulate.
The Australian government will also revise the rules governing financial services to create a digital asset environment that is more stable and protected. The consultation paper that has been proposed will serve as the foundation for the strategic plan that the country will use to implement the payments system by the year 2023.
New Regulations Set to Come in Action by 2023
The new strategy adopted by the government was discussed by the Treasurer of Australia, Jim Chalmers, in an interview with Bloomberg (1). He claimed that the only thing that is consistent in finance is change.
According to Chalmers, the business of finance is dynamic and ever-changing, and the regulatory system in place in Australia has not been able to keep up with these characteristics.
The difficulties that need to be fixed to build a strong and more secure financial system in Australia are beginning to be fixed, according to the Treasurer, who added that the changes had been implemented.
The failure of FTX brought to light sections of the business that lacked monitoring and compelled regulatory bodies to pick up their game in cryptocurrency regulation. Australia wants to establish regulatory paths to balance the expanding number of crypto developments in light of the recent instability sweeping across the industry.
In his presentation, Chalmers emphasized that the advent of the digital age offered new opportunities and hazards to the financial sector. As a result, the government of Australia intends to create an opportunity for additional innovations while also ensuring that proper regulatory safeguards are in place to keep customers safe.
Additionally, it will improve the safety of enterprises and make the digital environment more secure for everyone.
About Regulation of Cryptocurrency Wallets
In addition, the Australian government is thinking about strengthening its oversight of crypto custody and licensing to protect consumers' safety further.
A significant challenge facing the cryptocurrency business is the absence of specific legislation about bitcoin custodians, lenders, and other service providers. If this issue can be resolved, it will represent a significant step forward for the digital assets community in Australia.
As a result, the government of Australia has set a goal for the year 2023 to clean up and strengthen the security of the digital services sector. The government intends to establish a regulatory framework for "buy now, pay later schemes" before introducing legislation on digital assets. As a result of the developments in the digital asset business in 2018, more nations will pursue this course of action in 2023.
In the meantime, the Financial Service Board has revealed (2) that it intends to publish proposals for worldwide cryptographic standards by the beginning of 2023. According to Dietrich Domanski, who serves as the watchdog's secretary general, the board's goal is to address various hazards in the digital asset market.