The Australian government has confirmed it has plans to overhaul the payment system and that it will also include digital currencies in this plan.
The new regulations will focus on crypto taxation, regulation of digital banks and exchanges, and investor protection.
Jane Hume, the Australian Minister for Financial Services, declared that the government wants to make sure all crypto players are part of a regulatory ecosystem, since crypto adoption continues to grow:
“The government can’t guarantee your crypto any more than it can guarantee a painting or a share in a company, and nor should it. But we can make sure Australian exchanges, custodians, and brokers work within a regulatory framework that is better, safer, and more secure.”
Back in 2021, Treasurer Josh Frydenberg implied that Australia has plans to create new laws which involved crypto.
In accordance with the proposed regulations, the government will release three key documents aimed at reforming the payment sector. One paper tries to gather feedback from key actors on licensing and custody of digital assets.
One of the Treasury’s ideas was to force crypto exchanges to keep the assets of Australian investors onshore.
In addition, the paper will expose the findings of two crypto-related investigations, as well as the terms of reference. Australia’s competition and financial agencies are looking into the matter.
In terms of taxation, the Board of Taxation (BoT) is anticipated to provide the government with a detailed report on the best policy framework for crypto. Surprisingly, the government wants BoT to reduce the tax burden on the crypto sector.