Australia Bound to Reform Crypto Payments Regulations

Australia’s government is set to initiate its biggest reform in payment systems in the last 25 years and this includes cryptocurrencies, Treasurer Josh Frydenberg said on Wednesday.

In an interview with 7NEWS Australia Frydenberg said that he hopes that new regulations can “broaden the definition of services and products that can be regulated,” thereby bringing cryptocurrencies and digital assets “out of the shadows” and into a “world-leading” regulatory framework.

Stressing the urgency of needed change, Frydenberg said:

“If we do not reform the current framework, it will be Silicon Valley that determines the future of our payment system.

Australia must retain its sovereignty over our payment system.”

According to the Frydenberg, to provide safety and security to consumers, firms that buy and sell crypto will need to acquire a license. For this, the Australian government are in the process of drafting a licensing plan for crypto exchanges to take effect next year.

While the government is set to modernize Australia’s payment systems, the treasury will also collaborate with the central bank on a digital currency, Frydenberg revealed. He added that currently more than 800,000 Australians own some form of digital assets, with 3% of the population a figure much lower than previous surveys have shown.