Australian Government Announces New Plan For Licensing And Regulating Crypto Service Providers

The government of Australia has promised to establish a new framework for the licensing and regulation of cryptocurrency service providers by 2023. Furthermore, the development of appropriate custody and licensing settings to protect consumers will be among the next steps taken.

Unfortunately, local regulatory infrastructure has not kept pace with market changes, said Treasurer Jim Chalmers and Assistant Treasurer and Minister for Financial Services Stephen Jones in a joint statement. They also claimed that the previous administration did nothing in many areas while simultaneously making promises that seemingly went nowhere.

The government will decide which tokens or digital assets should be subject to financial services regulations. The new framework will thus be part of a strategic plan set to be released in the first quarter of 2023, along with a consultation paper.

The consultation paper is open for feedback until February 6th, 2023, and covers a wide range of topics in the crypto ecosystem, including CBDCs, stablecoins, digital wallets, and crypto assets.