Regulation News

Australia needs new regulations for its crypto industry

TL;DR Breakdown

• Senator seeks crypto regulation to improve Fintech trade.
• Australia could regulate cryptocurrencies to make them safe to use.

Australia’s legislative commission has to regularize to use of cryptocurrencies in the country. These announcements came to light after the Senate met to discuss the new rules against the crypto market.

According to senators, the regulations could make their cryptocurrency-based fintech companies able to function properly. These clarifications could bring a regulations wave that somehow facilitates crypto trading within the region.

Australia’s legislative committee calls for crypto regulation

The rapid growth of cryptocurrencies has surprised several countries, including Australia, which has not understood virtual trading. The legislative committee feels that the crypto market has potential. Still, to take advantage of it, they must create regulations to benefit their Fintech companies.

Under this announcement, the commission of senators shows guidelines that will solve some problems in the financial and technology sector based on cryptos. Among these problems is the absence of rules on cryptos and verification of Fintech companies using tokens.

Among the ideas launched by senators in Australia on cryptos is creating permits for using cryptocurrencies at the business level. In this way, the commission will feel that the country has control over this new financial technology increasingly used.

The committee requests these records be made in Austrac, corresponding to the largest financial agency in Australia.

Australian legislative commission observations on crypto trading

According to the commission, two brokerage companies sought licenses in the United Kingdom and Singapore to operate cryptos because there is no regulatory law in the country. The commission thinks that if the government does not apply measures against cryptos soon, they will lose the most innovative companies willing to use these tokens.

But the Senate in Australia also calls for a regulatory law for crypto storage agencies. In this way, some frequent problems in the new financial market would be addressed.

Other suggestions focus on creating a special agency for the decentralized market where the new technologies of the Blockchain network can be monitored. Simultaneously, the senators seek the approval of a law that addresses the problems of money laundering, scams, and other illicit operations in cryptocurrencies.

All these reforms that the legislative commission seeks to create for cryptocurrencies are signs of its progress in the technological world. The Australian commission wants to follow the example that countries like El Salvador, UAE, United States, United Kingdom, and Singapore do for the crypto market. The national government will take each suggestion and try to create laws for cryptocurrencies that could be announced in the coming weeks.

This post was last modified on October 22, 2021 7:34 am

Carisbel Guaramato

An avid content creator for over 4 years, Carisbel spends her time on blogs and technology news. She honed her skills as a social communicator and now finds crypto and blockchain news events worldwide for transmission through Cryptopolitan's neutral and incisive way.

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