Australia Proposes Strict Regulation for Crypto Sector Post FTX Fiasco

• Regulators looking for a way to better avoid recent disasters in the hereafter.
• Australia has just taken the first step in what will likely be a multi-year effort.

The first phase of Australia’s multi-year strategy to regulate Bitcoin and cryptocurrencies has been unveiled. Through this new approach, the government wants to make sure the regulation of cryptocurrencies safeguards users, according to Assistant Treasurer Stephan Jones.

The release cites shoring up enforcement, boosting user protection, and creating a structure for change. As the three main components of a “multi-stage approach.” 

In light of what happened in 2022, discussions on crypto regulation were likely to take center stage in 2023. In the wake of devastating events like the FTX affair. Regulators looking for a way to better avoid such disasters in the hereafter.

Several Regulatory Measures

Furthermore, Australia has just taken the first step. In what will likely be a multi-year effort to regulate Bitcoin and cryptocurrencies. The release describes the several regulatory measures that may be taken, beginning with the expansion of the Australian Securities and Investments Commission (ASIC).

According to the announcement, the organization would be growing its crypto staff and stepping up enforcement.  Furthermore, it requests that ASIC “pay particular attention to ensuring that risks to consumers are appropriately disclosed.”

The ACCC is also increasing efforts to combat frauds, particularly those involving cryptocurrencies according to the announcement. In addition, a set of requirements and operational criteria for cryptocurrency service providers will be established to guarantee that these organizations will properly secure their clients’ funds.

Moreover, in conclusion, the plan’s reform elements demonstrate that the government has not lost sight of “the risks and opportunities crypto poses for the future.”