This Country Announces Its Promised Cryptocurrency Regulatory Plans After The FTX Crash!

Australiawith an information sheet that provides more clarity on the direction to follow. cryptocurrency took a step towards regulating the industry.

Australia Announces Cryptocurrency Regulatory Plans

The Australian government has avoided a “comprehensive, specific classification” for crypto. Instead, he opted for a framework that groups crypto as intermediaries or service providers on the one hand, and public networks or smart contracts on the other.

For these categories, authorities want to know whether some existing financial regulations will be sufficient.

Following in the footsteps of the UK Treasury, which released a crypto briefing Thursday morning, the Australian Treasury is seeking feedback from stakeholders by 3 March.

In particular, officials want to clarify the answers on issues such as whether crypto should be regulated separately or within existing financial rules, how to protect investors, and the role of smart contracts.

The text in question refers to a 1997 financial system investigation to argue that “functionally equivalent products should be treated equally.”

The same approach can be traced back to the Financial Stability Board’s prescription of “same activity, same risk, same regulation”, the global watchdog’s proposed framework for crypto regulation released in October.

The Australian government has fulfilled its promise in December to come up with plans to license and regulate crypto service providers, following the dramatic collapse of crypto giant FTX.

Authorities then plan to issue a consultation in mid-2023 proposing a licensing and custody framework for crypto-asset service providers.

He states that the “logical next step” is to introduce a licensing regime with minimum standards for crypto-asset service providers, including safe custody.

*Not investment advice.