As several of the world’s most powerful economies attempt to clarify crypto rules, Australia jumps on board. According to a recent report, Australian authorities plan to develop a regulatory structure for digital currency exchanges shortly.

Bitcoin and other digital currencies would come under a financial licensing regime for cryptocurrency trading platforms, according to Australian Treasurer Josh Frydenberg, who recently praised the initiative.

Australia has the potential to become one of the world’s top countries in exploiting this new technology, Mr. Frydenberg said about the news. According to recent studies, up to 17% of Australians possess Bitcoin, with the number likely to be significantly higher among young Australians.

The Australian Treasurer said that discussions on a cryptocurrency licensing framework would begin in early 2022. They will also regulate cryptocurrency custodians, companies that handle digital assets on behalf of their customers.

Australia’s cryptocurrency firms are also on board with this initiative. However, it’d be a great shame if the regulation did not keep up with global peers like Singapore, Canada, and the United Kingdom, stated Caroline Bowler, CEO of BTC Markets.

Digital Currency Issued by Australia’s Central Bank (CBDC)

Josh Frydenberg, Australia’s Treasurer, has mentioned the idea of a central bank digital currency (CBDC) and pilot testing by the end of 2022. He does, however, support the cash business, arguing that the Australian CBDC should replace real banknotes.

Furthermore, the nation is considering expanding the legal framework for online transaction providers. Google and Apple, for example, are rapidly gaining a foothold in the payments business. Moreover, buy-now-pay-later (BNPL) companies such as Afterpay Ltd. are rapidly emerging and operating without direct control. 

“If we do not reform the current framework, it will be Silicon Valley that determines the future of our payment system. Australia must retain its sovereignty over our payment system,” Treasurer Frydenberg stated.

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