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The Australian government is working on new regulations for the digital currency industry. As Australians have been actively using crypto assets in recent years, the government wants to enact appropriate regulations to “bring the industry out of the shadows.”
The government believes that the time is ripe for financial rules to evolve to reflect radical changes in payment methods. More Australians are now switching to digital payments, with more than 55 million daily non-cash transactions valued at around A $ 650 billion ($ 466 billion), according to a Reuters report.
Treasurer Josh Freidenberg noted that digital currencies are quite popular in the country, with over 800,000 Australians invested in this asset class. Therefore, the government must develop a regulatory framework that not only protects investors, but also legitimizes the industry and potentially allows it to go mainstream.
Freidenberg said in an interview with 7NEWS that the government is expanding the definition of services and products that can be regulated.
“We are bringing this area out of the shadows and introducing it into a well-thought-out regulatory framework that is at the forefront of the world,” he told the publication.
Freidenburg, who took office in 2018, noted that for virtual asset service providers, the government will seek to properly license them, providing greater certainty and security for their customers.
In a December 8 report by Reuters last year, the Treasurer in a separate speech pointed to the need to regulate the financial services industry. He stated that if regulation does not evolve in step with the times, the future of our payment system will be determined by Silicon Valley. He added that only by regulating the new era of digital payments will Australia be able to maintain sovereignty over its payment system.
Treasury also sees great potential in the digital dollar.
“We are also going to work with the Reserve Bank to explore the possibility of introducing a central bank digital currency, which would be a leading global initiative,” Freidenberg said.
The Reserve Bank of Australia has long opposed digital currencies, which it believes undermine the monetary system. A few weeks ago, one of the bank’s executives lashed out at digital currencies, announcing that FOMOs and FOMOs would soon end, and they would collapse once stablecoins and CBDCs took root.
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