Treasurer Set To Regulate Cryptocurrency | Review of northern beaches

Treasurer Josh Frydenberg has announced a “reform plan” to payments and cryptocurrency assets that he says will put Australia ahead of the pack.

“This represents the most significant reforms to our payment system in 25 years,” he told the Australian-Israeli Chamber of Commerce (AICC) on Wednesday.

The tech sector is already estimated to generate $ 167 billion in production and employ over 850,000 Australians.

With over 220 million participants, global cryptocurrency assets are now worth more than $ 2,000 billion (A $ 2.8 trillion).

“Australia has the opportunity to be among the top countries in the world to take advantage of this new technology,” he said, joining fellow liberal Jane Hume who said crypto was “not a fad. “.

Early next year, he plans to begin discussions on a licensing framework for digital currency exchanges that will regulate the buying and selling of cryptocurrency assets, and on a custodial regulatory regime for companies that hold crypto assets on behalf of consumers.

Work on a retail central bank digital currency (CBDC) will begin with guidance on the pilot before the end of 2022, according to speech notes seen by the AAP.

The Board of Taxation will advise on a new policy framework for the taxation of transactions and digital assets and report by the end of 2022.

De-banking is another problem for individuals and businesses that the treasurer wants to tackle. It occurs when a bank refuses to provide a banking service.

Almost half of Australians now make payments with their mobile phones and COVID-19 has accelerated the use of digital wallets.

Around 55 million non-cash payments worth around $ 650 billion are made in Australia every day, from online purchases to digital payment packages landing in a bank account or a tap and go payment for a coffee.

Regulators will be responsible for reviewing fees, transparency and competition in the market.

In contradiction with decentralized finance which tries to regain control of institutions, the treasurer says that centralizing the oversight of the payment system will give the government a greater leadership role, including new powers of intervention.

Associated Australian Press

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