Australia’s Parliament is considering new legislation to regulate the digital currency market.
Australia will license cryptocurrency exchanges and think about making a digital retail currency for the central bank as part of the most significant overhaul of its payments industry in four decades.
The New laws will also cover payment providers like Apple and Google and buy-now-pay-later providers like Afterpay. This means that they will no longer run their businesses without direct supervision.
As part of a global effort to rein in big technology companies, Australia’s conservative government is taking a more liberal stance than countries like India and China, which have restricted the use of cryptocurrency.
If we do not modify the current framework, Silicon Valley will dictate the payment system’s destiny.
Josh Frydenberg said this in a speech.
Australians have made extensive use of cryptocurrencies and other digital assets that do not operate with cash during the pandemic because their lives have migrated online.
According to government data, approximately 55 million non-cash transactions are paid in Australia every day, and almost half of the people use their phones to make payments. So far this year, the number of people in Australia who have used cryptocurrency has jumped 63% from last year.
Frydenberg said the current regime would start talking about licensing digital exchanges in early 2022. This would allow people to buy and sell crypto assets in a protected system.
Furthermore, Frydenberg also said the government would also look into how businesses that hold crypto assets on behalf of customers should be regulated and whether a central bank digital currency would be a good idea.
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