Australia Introduces ‘Badge of Approval’ for Crypto Exchanges

Australia regulates the crypto market by first establishing ‘trust’ between investors and crypto exchanges.

Uniquely Australian 

Australia moves towards embracing crypto assets through a comprehensive regulatory regime that starts with trusted crypto exchanges for consumers to trade safely and securely. Senator Jane Hume, Minister for Digital Economy in a ministerial address announced that these crypto exchanges approved by the government will have a ‘healthy heart tick approval’ that will be a uniquely Australian stamp of quality.

Speaking to a crowd at the ‘Australian Blockchain Week 2022’, the Minister signals the government’s willingness to open its doors to players from the crypto industry. She said:

‘The crypto industry, and its applications in DeFi, is one of the most exciting frontiers I have seen. So my message to the room is: if you want to be a pioneer on the virtual frontier of innovation, Australia is open for business. As the Minister for the Digital Economy, and the Minister for Financial Services, I am backing you.’

In her address, Senator Hume spoke on the need to regulate the crypto industry through crypto exchanges. She also touched on custody arrangements on crypto assets by introducing custody requirements. 

Proposed Approach to Regulation

Hume generally outlined the Australian government’s policy towards emerging technologies such as the crypto industry. She spoke against the government imposing onerous red tape and undue restrictions as a knee-jerk reaction against scams and consumer protection. 

Senator Hume states the government’s general approach towards crypto regulation. 

She said:

‘The Government is taking a stance on crypto assets. It is a stance that is forward-thinking. We are leaning in.’  

Under the Morrison-led government, the digital economy stands at $AUD 2.1 billion. Senator Hume was optimistic that with the right regulatory settings, by 2030, the figure could be as large as $AUD68.4 billion. 

Paul R.Brody the leader in blockchain technology in EY, a global consulting and audit firm applauded the stance taken by the Australian government. 

The Morrison government has outlined an assuring policy that reinforces its commitment to a predictable, minimalist, consistent, and simple legal environment. The government’s role is to facilitate growth and innovation and this government is doing just that. 

Source : bsc.news