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Australia to Modernize Payments Reform, set to incorporate cryptocurrencies and digital assets

The Australian government plans a huge shakeup with its payments reform, and seeks to modernize and broaden cryptocurrencies and digital assets.

Australia
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The Australian government has announced what can only be known as the biggest payments reform in the past 25 years and is one that’ll take into account digital assets and cryptocurrencies as well.

Treasurer Josh Frydenberg elaborated on the details during an interview with 7NEWS on Wednesday stating that the new regulations that’ll “broaden the definition of services and products that can be regulated,” also taking cryptocurrencies and digital assets into consideration as they seek to bring them “out of the shadows” and into a “world-leading” regulatory framework.

Now, firms that trade in cryptocurrencies will be required to be licensed in order to ensure the safety and security of the users, said the Treasurer. The Australian government also seeks to create a licensing plan for all crypto exchanges in 2022, according to a report from the Australian Financial Review.

The treasury will also be working closely with the central bank to create a digital currency, Frydenberg said.

Back in October, a Reserve Bank of Australia official stated that there is no strong case for a CBDC in the country, but further continued by saying the central bank was ramping up its development in order to keep its position ahead of the global competition.

Frydenberg also noted that more than 80,000 Australian citizens currently own crypto assets in some form or another, the figure of which is 3% of the population, and largely lower than any previous estimates that were based on surveys taken online.

Furthermore, the regulation proposed by the treasurer shall also tackle the “buy now, pay later” services as well. He mentioned that over 5 million accounts already exist for such services. The Australian Senate also created a committee to head up research on crypto regulations back in March, and by October 20th, the committee had turned in a report on the legislators as well.

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