The Australian government has said it will take steps to ensure that “crypto asset regulation protects consumers” and one of these steps will be reform of “crypto asset custodial and licensing.” The Anthony Norman Albanese-led government also said it has published a consultation paper exploring “which elements of the crypto ecosystem are sufficiently regulated and which require additional attention.”
Prioritizing Consumer Protection
The Australian government has said it is working to “ensure that crypto asset regulation protects consumers” as well as positioning the economy “to take advantage of new digital products and services.”
To achieve these goals, the Australian government said it plans to “reform the licensing and custody of crypto assets.” Special emphasis will be given to a subset of cryptocurrencies “that currently fall outside the financial services regulatory framework,” the government said.
in a statement Issued on Feb. 3, the Anthony Norman Albanese-led government said it also intends to subject crypto asset service providers to what it calls “a set of obligations and operating standards.” The statement added that such standards are intended to safeguard customers’ digital funds.
Regarding the design of a custody and license framework, the Australian government said it will begin a public consultation process in “mid-2023 to allow sufficient consultation before legislation is introduced.”
Identification and control of emerging risks
Also in the statement, the Albanese Prime Minister’s government said that while it has taken immediate steps to protect consumers, much remains to be done. The government added:
A consultation paper published today explores in detail which elements of the crypto ecosystem are sufficiently regulated and which require additional attention. This will allow the government and stakeholders to focus on regulatory gaps and ensure that emerging risks are identified and controlled.
The statement also said that while the Australian government is open to working with stakeholders, it wants this to be done in an orderly manner. Doing this allows the government to “set the right policies to protect consumers and support innovation in this emerging sector.”
In addition to the planned cryptocurrency custody and licensing framework, the Australian government said it has already taken steps to ensure consumers are protected. Some of these steps include increasing the size of the Australian Securities and Investment Commission (ASIC) crypto team. Stopping scams, as well as detecting potential money laundering or terrorist financing, are also listed as other steps already taken.
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