Australia to Regulate Crypto in Payments Industry Overhaul

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Australia to Regulate Crypto in Payments Industry Overhaul


Australia will create a licensing framework for cryptocurrency exchanges and consider launching a retail central bank digital currency as part of the biggest overhaul of its payments industry in a quarter of a century.
The country will also expand its payments laws to cover online transaction providers like Apple Inc and Alphabet Inc’s Google, as well as buy now-pay later (BNPL) providers like Afterpay Ltd, ending their operations without direct supervision.

“If we don’t reform the current framework, it will be Silicon Valley that will determine the future of our payments system,” Treasurer Josh Frydenberg said in prepared speeches provided to Reuters. “Australia must retain sovereignty over our payments system. “

Australia’s conservative coalition government has been at the forefront of global efforts to curb big tech companies as it prepares for a federal election by next May.

The Liberal-National Governmentt, which is behind the left-wing Labor Party in most polls, has already this year forced Big Tech to pay media companies for content and take legal responsibility for defamation on their platforms.

(Do you mean the Liberal National Government?)

The government will begin consultations early next year on establishing a licensing framework for digital exchanges, which would allow consumers to buy and sell crypto assets in a regulated environment, Frydenberg said. in the prepared remarks.

There would also be a consultation on a regulatory regime for companies that hold crypto assets on behalf of consumers, and on the feasibility of a central bank digital currency, he added, with advice to be provided from by the end of 2022.

“Benefits for the consumer”

Australian banks and other players in the payments industry have long campaigned for the rules to apply to all parties involved in processing transactions.

A spokesperson for Afterpay, which agreed to a buyout by Square Inc, the payments company of Twitter Inc founder Jack Dorsey, said he supported “any approach that takes into account the benefits to consumers of the ‘innovation and competition that Afterpay has brought to the market’.

Apple and Google spokespersons were not immediately available for comment.



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