As part of its plan to modernize its financial system, Australia’s government will roll out a regulatory framework for the crypto industry in 2023. The framework will establish requirements for licensing and regulating crypto platforms in Australia.
In a press statement announcing its plan, the Australian Treasury stated:
The Albanese Government is delivering reforms to modernize Australia’s financial system, positioning our economy to embrace new economic opportunities and respond to future challenges.
The government's decision to create a framework resulted from the recent collapse of the FTX crypto exchange. FTX's Australian management team handed over the platform to licensed insolvency practitioners after the company collapsed. That auction enabled an independent assessment of the platform's financial situation.
Apart from developing a framework for the crypto industry within its jurisdiction, the government will also create laws for customer protection. These laws will primarily focus on appropriate custody and licensing settings to protect consumers.
Commenting about the development of custody and licensing settings to protect consumers, the Australian Treasury stated:
The Albanese Government is also taking action to improve the regulation of crypto service providers and ensure additional safeguards for Australians.
The government also plans to classify digital assets as part of its “ongoing token mapping work.” The classification process will allow the government to determine which assets will come under financial services laws. Before its recent announcement, the Australian Treasury had written a statement showing its intention to prioritize token mapping.
