The Australian government has introduced a new consultation document to regulate crypto exchanges to mitigate risks for consumers.
“The proposed regulatory framework would apply to digital asset service providers that present similar risks to entities that operate in the traditional financial system,” the paper stated.
Australian Government Pursues Flexibility in Crypto Regulations
The consultation paper indicates that the Australian government plans to leverage the existing regulations for traditional financial institutions. These will act as a guide for regulating crypto activities in the country.
“It seeks to leverage the Australian Financial Services Licence (AFSL) framework to regulate digital asset service providers to ensure consistent oversight and safeguards for consumers.”
However, it cites the fast-paced changing nature of the crypto industry. It states that “the implementation of the proposed framework is subject to future legislative design and development.”
“References to amending existing legal frameworks are demonstrative of policy intention. The focus of this paper is to seek feedback on the policy of the framework.”
The proposed framework aims to achieve several objectives, including safeguarding consumer interests and fostering innovation. It also highlights bringing Australia’s digital asset framework in line with global
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Author: Ciaran Lyons
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