The Federal Government has announced a crackdown on cryptocurrency and other digital currencies or ‘tokens’.
The measures are aimed at better protecting businesses and Australians investing in digital currencies.
Cryptocurrency has grown in popularity in the last few years, with one in four Australians now estimated to own crypto.
Crypto assets
The Federal Government has announced a crackdown on cryptocurrency and other digital currencies or ‘tokens’.
The measures are aimed at better protecting businesses and Australians investing in digital currencies.
Cryptocurrency has grown in popularity in the last few years, with one in four Australians now estimated to own crypto.
Crypto crackdown
The value of digital tokens has dropped significantly in the past 12 months. A trend in investors selling their currencies led to many crypto companies going bankrupt.
This left some Australians unable to withdraw their money.
The Government wants regulations to stop this from happening again, including introducing the same rules for crypto platforms as other financial services, such as banks and superannuation companies.
Under the proposed reforms, crypto providers would be required to gain an Australian Financial Services Licence — an official document awarded to businesses that can prove responsible financial conduct.
Applications are assessed by the Australian Securities and Investments Commission, the national corporate regulator.
What’s next?
The Government is accepting public feedback on the proposed reforms until 1 December. This will inform further consultation, with legislation not expected to be tabled until next year.
Crypto regulations have already been added in the UK, EU and Canada. These have been proposed to protect investors and promote competition in the financial services industry.
