Australian Finance Minister Jim Chalmers presented a comprehensive arrangement plan for crypto currencies before the upcoming election process. The new regulation framework ensures the protection of investors and aims to support internal innovation. Crypto currency platforms are planned to assume similar responsibilities with banks. The government will prepare the draft law and submit it to the public opinion.
Equivalent obligations with banks for crypto currencies
The regulation plan requires crypto currency platforms to fulfill general financial obligations. These platforms, which will carry similar responsibilities to banks and traditional financial institutions, will also be responsible for the safe protection of investor funds. User assets are kept in separate accounts and special storage systems are expected to be commissioned.
Innovative regulations are planned for organizations that provide payment services in the field of crypto currency. If these organizations operate limited with some fixed valuable digital assets, they will benefit from certain exceptions. In addition, such assets are intended to be considered in a similar way by traditional payment methods.
The new regulation also takes into account small-scale enterprises and start-ups operating in the sector. By introducing adapted obligations specifically to these enterprises, the growth potential of developing companies are desired to be protected. Thus, both investors will be protected and innovative initiatives will be paved.
Sector views and international standards
The Australian government plans to take into account the feedback from the sector and the public while preparing the bill. The main purpose of the plan is to evaluate the potential offered by crypto currency technology and to comply the sector to international standards. Thus, both domestic confidence will be increased and global investor interest will be withdrawn.
Digital Economy Council of Australia (Deca) said that the regulation will make positive contributions to the sector. According to Deca, the strengthening of the existing regulatory framework will encourage sustainable growth in the crypto currency market. In addition, risk management and transparency will give clarity to the sector.
An important pillar of the new regulation is that it raises more strict reporting in terms of export of digital assets and reserve proof. In this way, user confidence will be increased and the risk of manipulation in the market will be reduced. Thanks to the expanded regulatory application area, the integration of crypto currency technology with financial markets and the general economy will accelerate.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
