Australia offers new cryptocurrency plan to protect its investors from financial risks
Australia introduces new cryptocurrency plan
In an effort to protect cryptocurrency investors from financial risk, Australia has developed a three-phase plan, the Australian Government’s new plan aims to develop laws governing cryptocurrency designation, strengthen legal control over cryptocurrency transactions and ensure the protection of the cryptocurrency user, the three-point plan seeks to further regulate the country’s cryptocurrency sector.
This development comes on the back of Australia’s growing cryptocurrency culture, according to research firm Cointree, Australia is estimated to have 4.6 million cryptocurrency holders.
Australian Chancellor of the Exchequer Jim Chalmers and Assistant Treasurer Stephen Jones issued a joint statement clarifying the plan’s objective, as unsustainable business models used by some companies dealing in cryptocurrencies left consumers exposed, and the release said Australian regulators were strengthening their focus on cryptocurrency providers to ensure they fulfilled their obligations to Australian consumers.
Australians lost more than $81.5 million in cryptocurrency fraud between January and May last year, the Australian Competition and Consumer Commission (ACCC) revealed in an alarming report.
In September last year, the Australian Federal Police established a new unit tasked with a single-track function to identify and address illicit financial transfers facilitated through encrypted assets.
ACCC also enables automatic identification and removes dubious and suspicious encryption sites to protect the encryption community from financial risk, according to.
The government will reform the licensing and maintenance of encrypted assets, particularly for the subset of encrypted assets that are currently outside the regulatory framework of financial services. The Australian cashier’s statement added, “We will establish a set of liabilities and operating standards for cryptocurrency service providers to ensure they are sufficiently secure, and hold assets for customers.
The State has issued an advisory paper detailing elements of the already regulated cryptocurrency sector, and elements that need more immediate attention.
Code designation seeks to build a shared understanding of crypto assets in the regulatory context of Australia’s financial services, and this will explore how current regulations apply to the crypto sector and inform future policy options.