Australia has developed a three-step plan to protect its crypto investors from financial risks. The Australian government’s new plan aims to enact legislation to regulate the attribution of crypto tokens, strengthen legal oversight of crypto transactions and ensure the protection of crypto users. The three-point plan aims to further regulate the cryptocurrency sector in the country. The development is taking place against the background that Australia is experiencing a growth in its crypto culture. According to research firm Cointree, Australia is home to an estimated 4.6 million crypto holders.
Australian Treasurer Jim Chalmers and Deputy Treasurer Stephen Jones issued a joint statement on Friday 3 February outlining the aim of this plan. “Unsustainable business models used by some companies trading crypto assets have exposed consumers. Australia’s regulators are increasing their focus on crypto asset providers to ensure they meet their obligations to Australian consumers issued statement said.
Australians lost over $81.5 million (about Rs.6.5 billion) to crypto scams between January and May last year, the Australian Competition and Consumer Commission (ACCC) revealed in an alarming revelation report.
In September last year, the Federal Police of Australia set up new unit tasked with a one-line job of identifying and combating illicit money transfers facilitated by crypto assets.
the Acc also works to enable automatic identification and removal of questionable and suspicious crypto websites to protect its crypto community from financial risks.
“The government will reform the licensing and custody of crypto assets, particularly for the subset of crypto assets not currently covered by the financial services regulatory framework. We will establish a set of commitments and operating standards for crypto asset service providers to ensure they keep assets appropriately safe for clients,” the Australian Treasurer’s statement added.
The country has released a consultation paper detailing elements of the crypto sector that are already regulated and those that require immediate attention.
“The token mapping aims to build a common understanding of crypto assets in the regulatory context of Australian financial services. This will examine how existing regulation will be applied to the crypto sector and inform future policy decisions,” the consultation paper reads read.
The government there has asked stakeholders to submit their feedback, which would be considered by regulators working on drafting a cryptocurrency presidency rulebook.
