Australia Will Regulate Crypto And Big Tech As Part Of Payments Reform
Australia is preparing a new regulation on the activities of cryptocurrency exchanges and custodians. The move is part of a larger regulatory reform, aimed at preserving the country’s sovereignty over its payments system, affecting also companies such as Apple and Google.
Australian authorities are getting to update the country’s legislation regarding payments in the largest reform of the industry in over two decades. The changes will expand the regulatory framework to encompass new payment processors in the online space including those dealing with cryptocurrencies.
Next year, the government will begin consultations on the establishment of a licensing framework for crypto exchanges and the regulation of platforms holding digital assets on behalf of clients, Reuters reported. The government also wants to explore the feasibility of a central bank digital currency (CBDC) issued by the Reserve Bank of Australia.
Daily non-cash payments, including crypto transactions, are currently sitting at 55 million, after having spiked during the Covid-19 pandemic as many Australians have turned to online options. Nearly 50% of them are using their phones to make payments while in 2021 those transacting in crypto have increased by 63% over the previous year.
Not only crypto
Australia’s plan to broaden its payment regulations also aims to cover online transaction processors such as Apple and Google as well as buy-now-pay-later providers like Afterpay. The goal is to put an end to their unsupervised operations in the country. Speaking on the need for the amendments, Federal Treasurer Josh Frydenberg warned:
“If we do not reform the current framework, it will be Silicon Valley that determines the future of our payment system. Australia must retain its sovereignty over our payment system.”
Google and Apple have so far not commented on the announcement but a spokesperson for Afterpay said that the company supports “any approach that takes into account consumer benefits from the innovation and competition Afterpay has brought to the market.” The platform has agreed to a buyout from Twitter founder Jack Dorsey’s payments firm Square, according to Reuters.
At the moment many other major economies are taking steps to determine their regulatory policies regarding financial innovations, including cryptocurrencies. Unlike China and India, for example, Australia is preparing to take a more inclusive approach similar to that of the United States, the report suggests.
