Australia Aims To Modernize Country’s Financial System: Make Moves Towards Cryptocurrencies Regulation

• The Herald Sun reports revealed that the Australian government is planning significant moves in regulating cryptocurrency with an aim to modernize the financial system of the country. 

• The latest reforms will also include reforms regarding cryptocurrency taxation and Investor protection.

• The Australian government, with these reforms, aims to make the cryptocurrency sector in the country more secure and safe.

As per the Herald Sun reports, Australia is gearing towards regulating the cryptocurrency sector as an initiative to modernize the financial system of the country. 

The government will be introducing a set of documents on January 21st outlining how the crypto industry will be regulated. The crypto industry will also be consulted by lawmakers on how to go about market licensing and cryptocurrency custody. 

Local crypto exchanges will also be required to store their client’s funds within the country is what the Department of the Treasury intends to implement.

Investor protection and cryptocurrency taxation will also be addressed in the latest reforms. 

Jane Hume, Financial Services Minister, states that the government wants to ensure that the cryptocurrency sector in Australia runs within a safe and secure regulatory framework. 

A parliamentary report by Senator Andrew Bragg will act as the basis for the regulatory framework. In December, Treasurer Josh Frydenberg backed the plan. 

To ensure that businesses in quest of friendlier jurisdiction don’t leave the company, Bragg demanded fast-tracking cryptocurrency-related reforms earlier this month. He also pointed out that some crypto businesses are leaving the country during his speech at the APAC Blockchain conference. 

Moreover, Bragg predicted that trends like this are a threat to the economy of Australia. In his speech, he was also clear that crypto regulations shouldn’t become an obstruction for the local entrepreneurs. 

The Crypto sector in Australia could experience a 30 times boost by the crypto plan proposed by Bragg. The industry could reach $68.4 billion by 2030, securing over 200,000 jobs, as per the analysis conducted by EY. 

The requirement of a new regulatory framework also stems from the fact that only a quarter of Australians have some exposure to cryptocurrencies. 

Ritika Sharma

With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.