Australian Top Bank and Rulers Both Considering New Crypto Regulations

Joseph Longo, the chair of the Australian Securities and Investments Commission (ASIC), has been very explicit about the way he feels about cryptocurrency investments. “Being a crypto cheerleader is not part of my job description,” she said.

Longo stated on Tuesday at a luncheon hosted by the Committee for Economic Development of Australia that cryptocurrency is a “financial innovation full of promise, celebrity status, and volatility.”

He further highlighted the differences between the benefits of blockchain and the volatility of cryptocurrency, as well as how the two things should not be confused with one another.

The Australian Securities and Investments Commission (ASIC) functions similarly to the Securities and Exchange Commission (SEC) in the United States, regulating the financial sector and protecting consumers. And because the number of people investing in cryptocurrencies in Australia is expanding rapidly, the regulator there is increasing the amount of attention paid to the business.

Per a report by the Australian Securities and Investments Commission (ASIC) that was released on August 11, 44% of the 1,053  Aussies polled owned cryptocurrency, and 25% of those surveyed stated that cryptocurrency was the only investment they had.

“With so many new investors active in financial markets, the research builds on our understanding of retail investors and helps us consider where our regulatory efforts are warranted,” Longo said in the report. “The research builds on our understanding of retail investors and helps us consider where our regulatory efforts are warranted.”

Longo emphasized the significance of effectively implementing any new regulations in order to protect both new and existing investors in cryptocurrencies during a time when crypto regulation in Australia was undergoing a review.

On Monday, the government of Australia detailed its interest in regulating cryptocurrencies, beginning with the classification of cryptocurrencies using a term known as a “token map.” According to the Sydney Herald Times, the map would chart “the amount, type, and underlying code of available cryptocurrencies.” This information would be included on the map.

“As it is, the cryptocurrency business is mainly unregulated,” said the Treasurer of Australia, Jim Chalmers. “We need to undertake some effort to get the balance right so that we can embrace new and innovative technology while protecting consumers.”

 

How Australia Deals with Cryptocurrency

The regulatory environment in the cryptocurrency business was historically murky, which deterred banks from collaborating with cryptocurrency companies. Australia’s revamp of the cryptocurrency industry aims to change this environment.

The prior administration, led by Josh Frydenberg, who served as Treasurer, was likewise interested in modifying the regulations governing cryptocurrencies. He aimed to strengthen licensing requirements for crypto businesses and “give greater confidence and security to those consumers who are trading in that space.”

According to Frydenberg, this was merely the beginning of bringing cryptocurrency “out of the shadows.”

Cryptocurrency investors will have the opportunity to identify market trends and the intricacies that can affect a token at any given time, according to the recent categorization of the token map carried out under the leadership of Prime Minister Anthony Albanese.

“The Albanese [Prime Minister Anthony Albanese] Government is taking a more serious approach to work out what is in the ecosystem and what risks need to be looked at first,” Chalmers said. “The Albanese Government is taking a more serious approach to work out what is in the ecosystem and what risks need to be looked at first.”

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