The government of Australia will announce the biggest reform in payment systems in 25 years, including crypto, on Wednesday, Treasurer Josh Frydenberg said.
- In an attempt to modernize Australiaâ€™s payment systems, the new regulations will â€œbroaden the definition of services and products that can be regulated,â€ taking cryptocurrencies and digital assets â€œout of the shadowsâ€ and into a â€œworld-leadingâ€ regulatory framework, Frydenberg said in an interview with 7NEWS Australia on Wednesday.
- Firms that buy and sell cryptocurrencies will have to be licensed to bring safety and security to users, the treasurer said. The government will also work out a licensing plan for crypto exchanges next year, the Australian Financial Review reported.
- The treasury will also be working with the central bank on a digital currency, according to Frydenberg.
- In October, an official from the Reserve Bank of Australia said that there is no strong case for a CBDC in Australia, but that the central bank was ramping up its development to stay ahead of global competition.
- More than 800,000 Australians own some form of crypto assets, Frydenberg said. That figure is about 3% of the population, significantly lower than previous estimates based on online surveys.
- The treasurerâ€™s proposed regulation will also take aim at â€œbuy now, pay laterâ€ services. Over five million accounts for such services exist in Australia, he said.
- Australiaâ€™s Senate formed a committee to research crypto regulations in March, which submitted a report to legislators on Oct. 20.
Read more: Australia Faces Big Choices on Crypto Regulation