Australia’s federal government is planning new laws to regulate financial platforms, and this includes cryptocurrencies, planned for 2023.
Noting the finance sector’s rapid change and need for an overhaul of the regulatory framework, Treasurer Jim Chalmers said the laws will “update Australia’s payment system and attempt to bolster the infrastructure of financial markets” and strengthen and streamline regulators’ licensing, supervisory, and enforcement powers in respect of financial market infrastructure to reduce the likelihood of a crisis occurring.
“The digital age has brought new opportunities and risks to finance. Our plan is about opening up space for further innovation while making sure we have the right regulatory approach in place to keep consumers, businesses and the system, safe,” Chalmers said in a media release on Wednesday.
Among the changes in store are a regulatory framework for the licensing of crypto service providers and additional powers to the Reserve Bank to better regulate digital wallets.
The government said it it conituing “token mapping” of crypto and will release of a consultation paper in early 2023 to “inform what digital assets should be regulated by financial services laws, and the development of appropriate custody and licensing settings to safeguard consumers.”
Following the release of token mapping, the Government will consult on a custody and licensing framework next year before introducing legislation.