- With that in mind, we should recall the Senate report from October 2021, which advocated a crypto framework approach. Aside from establishing a governance framework, the bipartisan proposal gave the Treasury the authority to regulate bitcoin exchanges as holders of financial markets licences.
- A new framework would also replace the existing one-size-fits-all payment licence arrangements with a functionally oriented structure implementing graduated, risk-based regulatory criteria, according to the proposal.
- The Council of Financial Regulators is continuing to study the regulatory regulation of different sorts of crypto-assets, he said, adding that if privately issued stablecoins are the way things go, it will be critical that they fulfil very high requirements.
RBA governor Philip Lowe and ASIC chairman Joe Longo have sought for expanded powers to oversee the crypto market this year as consumers turn to it. According to local media sources, the governor of the Reserve Bank of Australia has asked the government to address the petition immediately. Which will provide the watchdogs enough authority to keep an eye on the virtual asset space.
Even Though Consumer Acceptance Increases, The Sector Requires Reform
Lowe has requested the adoption of a national plan to monitor the country’s payment system as part of this. Last year’s Treasury study effectively made this proposal. The essence of money evolves with technology, and technology is rapidly evolving, Dr. Lowe said at an event. Treasurer Josh Frydenberg announced in a December 2021 review that the government will establish a licensing framework for crypto platforms by mid-2022. A new framework would also replace the existing one-size-fits-all payment license arrangements with a functionally oriented structure implementing graduated, risk-based regulatory criteria, according to the proposal.
It’s no secret that as consumer interest in crypto grows, new fintech players are turning to provide crypto services. Regulators around the world are requesting a fresh method to stay up with technology in the new era of banking. We need that plan, and it needs to be good, Dr. Lowe added. It requires widespread support. There will also be crucial pieces of legislation that must be passed to ensure that Australia is well-positioned for future advances.
The regulators also wanted the government to respond to the Council of Financial Regulators’ ideas for stablecoins. Governor Lowe had already warned investors about the dangers of investing in crypto, especially stablecoins, in a speech. The Council of Financial Regulators is continuing to study the regulatory regulation of different sorts of crypto-assets, he said, adding that if privately issued stablecoins are the way things go, it will be critical that they fulfill very high requirements.
In the meanwhile, Shadow Treasurer Jim Chalmers wrote in the paper that the current system lacks consistent governance to manage the complexity of issues and the pace of frequent innovation in the sector, implying that the Labor government needs to alter payments.
Crypto Framework
Reforms that will empower regulators and facilitate regulation that is as nimble as the sector itself, according to Chalmers. With that in mind, we should recall the Senate report from October 2021, which advocated a crypto framework approach. Aside from establishing a governance framework, the bipartisan proposal gave the Treasury the authority to regulate bitcoin exchanges as holders of financial markets licenses.
Longo calls the implementation of these suggestions by attorney Scott Farrell and the Senate committee chaired by Andrew Bragg urgent. In the short time, I’ve been chair, I’ve been astonished how quickly this phenomenon has evolved and has taken up a lot more of my time than I anticipated when I started, the ASIC chief said. These standards are not just intended to control pure-play crypto platforms, but they might also regulate big giants like Facebook and Apple, according to reports.
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Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2022/03/12/the-reserve-bank-of-australia-is-seeking-executive-authority-to-oversee-the-fast-expanding-cryptocurrency-industry/