The Australian government has pledged to regulate the regulation and custody of crypto assets to ensure that crypto assets rules safeguard consumers. The administration of Anthony Norman Albanese also announced the release of a consultation document that investigates whether components of the crypto ecosystem are appropriately regulated and which require more attention.
Prioritising the Protection of Consumers
According to the Australian government, its goal of preparing the country’s economy to take advantage of new digital products and services involves ensuring that regulating crypto assets will safeguard consumers.
Australian officials have said they intend to change the licensing and custody of crypto assets to carry out these objectives. There will be a focus on a specific subset of cryptocurrencies that now lie outside the financial services regulatory framework.
The administration stated on February 3 that it plans to require crypto asset service providers to adhere to a series of requirements and operating standards. The implementation of such regulations is necessary to protect clients’ virtual funds.
According to the Australian government, a public consultation process would begin in mid-2023 to allow for ample engagement before the introduction of legislation about the creation of a custody and licensing system.
Identifying and Controlling Emerging Risks
In addition, the administration of Prime Minister Albanese noted that while it has taken quick action to safeguard consumers, more has to be done. The government added:
A consultation paper released today explores in detail which elements of the crypto ecosystem are sufficiently regulated and which require additional attention. This will enable the government and stakeholders to focus on regulatory gaps and ensure that emerging risks are identified and controlled.
The statement said that while the Australian government is willing to collaborate with interested parties, it still prefers a systematic approach. This ensures that the policy conditions are correct to safeguard consumers and foster innovation in this developing industry, as the government puts it.
The government of Australia has said that it has already taken actions to safeguard consumers, in addition to the proposed crypto custody and licensing structure. As part of these measures, the Australian Securities and Investments Commission (ASIC) has expanded its crypto staff. Other measures are intended to prevent fraud and identify instances of potential money laundering or terrorism funding.
