As part of a comprehensive plan, the Australian government is strengthening its watchdog’s digital asset division to tighten cryptocurrency regulation and ensure that crypto companies provide proper risk disclosures.
Australia Adopts Multi-Stage Approach For Crypto Regulation
Recently, Stephen Jones, an Assistant Treasurer, and Jim Chalmers, an Australian Treasurer, released a joint statement saying the purpose of the new measures is to safeguard consumers involved in cryptocurrency transactions.
According to the treasurers, the multi-stage approach will consist of three elements. The elements include creating a framework for its token mapping exercise, fostering consumer protection, and strengthening the enforcement of regulations.
Meanwhile, one of the necessary modifications will involve augmenting the size of the digital assets division within the Australian Securities & Investments Commission (ASIC) and enhancing enforcement measures.
In addition, Chalmers and Jones stated that the ASIC would guarantee that crypto firms fully disclose the dangers associated with crypto products and services to consumers.
Simultaneously, the government plans to provide the Australian Competition and Consumer Commission (ACCC), the nation’s consumer watchdog, with new tools. These tools will help the commission safeguard consumers from fraudulent activities associated with cryptocurrencies.
According to the report, scam losses resulting from cryptocurrency payments amounted to $221 million last year. The ACCC will receive a new tool in the form of a real-time data-sharing platform and use it to detect and prevent cryptocurrency scams.
Additionally, the treasurers argued that establishing a crypto regulatory framework will strengthen consumer protection. It will also help to oversee the licensing and storage of digital assets.
Implementation Starts In Mid-2023
However, the implementation of this framework will not commence until mid-2023. Also, it is expected that a considerable amount of time will pass before it is incorporated into legislation.
The treasurers said:
“The previous administration attempted to address cryptocurrency policy but never made a concerted effort to future-proof the regulatory frameworks to safeguard consumers and provide guidance for this new and developing type of asset.”
Chalmers and Jones added that they are taking swift and deliberate action to guarantee that consumers receive adequate protection. They believe that this will allow true crypto innovation to strive.
Earlier, the Australian Treasury published its token mapping consultation paper. The consultation paper aims to figure out which parts of the cryptocurrency landscape will be subject to regulation and to what degree of control.
Meanwhile, the Australian authorities hastened its multi-stage crypto plan following the catastrophic demise of FTX in November. The FTX saga affected over 30,000 individuals in Australia and 132 businesses based in the country.
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