Australia to Shake Up Digital Payment Regulations
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Australian authorities will revamp the regulatory landscape for digital payments, broadening its remit on online transaction providers, cryptocurrency exchanges, and the possible creation of a central bank digital currency.
On crypto exchanges, Australia will begin consultation early next year on establishing a licensing framework and regulations for businesses the hold crypto assets on behalf of consumers.
It will also consult on the feasibility of a central bank digital currency with advice provided by the end of 2022.
Online transaction providers and buy-now-pay-later providers will also effectively see the end of unregulated business as Australia will also broaden its payment laws to cover such payment players.
If we do not reform the current framework, it will be Silicon Valley that determines the future of our payment system, according to a report citing notes by Australian treasurer Josh Frydenberg.
Australia must retain its sovereignty over our payment system.
Questions & Answers
Q.Which specific types of businesses will be brought under new regulations by Australia?
Which specific types of businesses will be brought under new regulations by Australia?
Australia plans to broaden its payment laws to cover online transaction providers, buy-now-pay-later providers, and cryptocurrency exchanges. This aims to end the current period of unregulated business for these entities.
Q.What is the timeline for new regulations concerning cryptocurrency exchanges?
What is the timeline for new regulations concerning cryptocurrency exchanges?
Consultation on establishing a licensing framework and regulations for businesses holding crypto assets on behalf of consumers will begin early next year. This is part of a broader revamp of digital payment regulations.
Q.Why is Australia looking to reform its current payment system framework?
Why is Australia looking to reform its current payment system framework?
The Australian Treasurer, Josh Frydenberg, noted that without reform, Silicon Valley would determine the future of their payment system. Australia aims to retain sovereignty over its payment system by broadening regulations.
Q.When will advice on the feasibility of a central bank digital currency be provided?
When will advice on the feasibility of a central bank digital currency be provided?
Australia will consult on the feasibility of a central bank digital currency, with advice on this matter expected to be provided by the end of 2022. This is part of the broader regulatory revamp.
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