The first step of a multi-stage plan to regulate the cryptocurrency industry in Australia has been released.
The Australian government has announced the first step of what it calls a multi-stage approach to tackling cryptocurrency regulation.
According to the announcement, “the multi-stage approach has three elements: strengthening enforcement, strengthening consumer protection; and creating a framework for reform.
The first step begins with the Australian Securities & Investments Commission (ASIC) increasing the size of its crypto team and “enforcement measures”. The enforcement measures described include taking legal action when cryptocurrencies are marketed without the appropriate financial license. In addition, the report illustrates that special attention will be paid to ensure that risks are properly disclosed to consumers.
These measures are intended to improve efforts to target fraud, especially those involving cryptocurrencies.
“The Government’s National Anti-Scams Centre, which is part of the Australian Competition and Consumer Commission (ACCC), will facilitate the sharing of real-time data and the coordinated prevention and disruption of scams,” read the report, indicating that data collection will be a major part of the operation.
In addition to the measures announced today, the government introduced a token mapping consultation paper on “elements of the crypto ecosystem that are sufficiently regulated and require additional attention.” The paper addresses Bitcoin specifically, describing it as a cryptocurrency network with the intention of operating as a “peer-to-peer payment structure,” as a “new form of currency.” In addition, Bitcoin’s use cases are outlined, including its use as a store of value, and as a medium of exchange, “especially in emerging markets.”
The Australian government’s multi-level approach to cryptocurrency regulation is designed to protect consumers while also providing regulatory oversight and clarity, but it remains to be seen if this regulatory environment will stifle growth and innovation, or fulfill its desired goals while maintaining growth.