Consumers are increasingly cryptocurrency Australia’s Central Bank Governor Philip Lowe and Australian Securities and Investment Commission chairman Jeo Longo this year sought more authority to manage this sector.
According to local media sources, Bank of Australia Governor Lowe has asked the government to immediately consider his request. If Lowe’s wish comes true, the country’s cryptocurrency sector will be overseen by the Central Bank.
As part of this, Lowe also called for the adoption of a national plan for overseeing the nation’s payment system. That recommendation was essentially made during last year’s Treasury review.
“Australia Must Adapt to the Changing Nature of Money”
Dr. Lowe had this to say on the subject at an event he attended:
“The nature of money is changing with technology, and technology is evolving very quickly.”
Australian Treasury Secretary Josh Frydenberg stated in a December 2021 review that the Government will complete a licensing framework for crypto platforms by mid-2022.
In addition, it was announced that the new licensing framework will replace the existing single model payment licensing arrangements as a tiered and risk-based functional framework.
“There Are Pieces Of Legislation That Need To Be Prepared To Keep The Country In A Good Position For Innovations”
It is not a new development that fintechs are slowly turning into crypto service providers due to consumer interest in this space.
In this new era of the banking industry, regulators are demanding different approaches to keep up with technology.
Dr. Lowe continued his words on the subject as follows:
“We need a plan, and that plan has to be good. It should be widely supported. There are also important pieces of legislation that need to be prepared to make sure Australia is well positioned for future innovations.”
“The Earlier We Regulate The Cryptocurrency Industry The Better”
Jeo Longo, head of the Australian Securities and Investment Commission, said:
“We don’t have much time left to work on this issue. The sooner we make adjustments balanced between supporting innovations and protecting investors for this industry, the better.”
*Not investment advice.