Australia is home to 4.6 million cryptocurrency owners. Australia will introduce a new cryptocurrency plan to safeguard its investors.
In an effort to safeguard its cryptocurrency investors from financial hazards, Australia has developed a three-stage approach. The new plan from the Australian government intends to introduce regulations that will control how crypto token mapping is done, increase legal monitoring of crypto transactions, and guarantee user safety for crypto. The three-point proposal aims to censor the country’s bitcoin market further. The development occurs against a backdrop of Australia’s crypto culture expanding. Australia is thought to have 4.6 million cryptocurrency owners, according to research firm Cointree.
Australian Treasurer Jim Chalmers and Assistant Treasurer Stephen Jones jointly released a statement outlining the goal of this strategy. “Some businesses dealing in crypto assets have exposed customers by using unsustainable business methods. To ensure that they fulfill their commitments to Australian customers, Australia’s authorities are focusing more intently on crypto asset providers, according to a statement that was made public.
Australia will introduce a new cryptocurrency plan to safeguard its investors
According to an alarming study by the Australian Competition and Consumer Commission (ACCC), between January and May of last year, Australians lost over $81.5 million (approximately Rs. 650 crores) to cryptocurrency frauds.
The Australian federal police established a new section in September of last year with the single-track goal of identifying and stopping criminal money transactions using crypto assets.
To protect its crypto community from financial hazards, the ACCC is also trying to allow auto detection and shutdown of dubious and dangerous crypto websites.
“The government will reform the licensing and custody of crypto assets, particularly for the subset of crypto assets that currently fall outside the financial services regulatory framework. We will establish a set of obligations and operational standards for crypto asset service providers to ensure they adequately safe‑keep assets for customers,” the statement from the Australian treasurer further added.
A consultation document outlining the aspects of the cryptocurrency industry that are already regulated and those that require more immediate attention has been published by the nation.
Token mapping aims to provide a common understanding of digital assets inside the legal framework for Australian financial services. This will investigate how current legislation affects the cryptocurrency industry and help guide future policy decisions, according to the consultation document.
The local administration has urged interested parties to provide comments, which authorities crafting a rulebook to oversee cryptocurrency would take into account.