The first steps of a multi-stage plan to regulate the cryptocurrency industry in Australia have been unveiled.
The Australian government has announced the first step of what it calls a multi-stage approach to tackling cryptocurrency regulation.
According to the advertisement, “the multi-stage approach has three elements: strengthen enforcement, strengthen consumer protection; and establish a framework for reform.”
The first step begins when the Australian Securities and Investments Commission (ASIC) increases the size of its crypto team and “increases compliance measures.” These described compliance measures include taking legal action when cryptocurrencies are traded without the appropriate financial licenses. In addition, the report outlines that particular attention will be paid to ensuring that risks are properly disclosed to consumers.
These steps are intended to intensify efforts targeting scams, especially those involving cryptocurrency.
“The Government’s National Anti-Scam Centre, located within the Australian Competition and Consumer Commission (ACCC), will facilitate real-time data sharing and coordinated prevention and disruption of scams,” the report said, stating that data collection will be an important part of operations.
In addition to the steps announced today, the government introduced a token mapping reference document address “which elements of the crypto ecosystem are sufficiently regulated and which require additional attention.” The document specifically addresses Bitcoin, describing it as a cryptocurrency network intended to operate as a “peer-to-peer payment structure,” as a “new form of currency.” Additionally, use cases for Bitcoin are illustrated, including its use as a store of value and as a medium of exchange, “particularly in emerging markets.”
The Australian government’s multi-stage approach to regulating cryptocurrency is designed to protect consumers while providing oversight and regulatory clarity, but it remains to be seen whether this regulatory environment will stifle growth and innovation, or comply its intended purpose while harboring growth.
