Australia to consult on digital asset regulation in early 2023

The Australian government has announced plans to regulate cryptocurrency service providers and establish a framework for licensing and regulation in 2023. The government, led by Prime Minister Anthony Albanese, aims to define what digital assets should be subject to financial services laws, and to develop appropriate rules to safeguard consumers.

The next steps in the government's "token mapping" work will include the release of a consultation paper in early 2023. This paper will inform the government's approach to regulating digital assets under financial services laws. The government will also develop appropriate custody and licensing settings to protect consumers.

The government's plans are still in the early stages, and legislation has not yet been drafted. However, the government's commitment to regulating the cryptocurrency industry is part of a broader effort to ensure the safety and stability of Australia's financial system.

In addition to regulating cryptocurrency, the government plans to strengthen Australia's payments systems and financial market infrastructure. The government also plans to establish a regulatory framework for Buy Now Pay Later services in 2023.

The government's plans are likely to be welcomed by consumers and the cryptocurrency industry alike. Cryptocurrencies have become increasingly popular in recent years, and a clear regulatory framework will provide greater clarity and certainty for both consumers and industry participants.

The Albanese government's commitment to regulating the cryptocurrency industry is in line with the approach of many other governments around the world. In recent years, a growing number of countries have introduced regulations to protect consumers and ensure the stability of the financial system.

The government's plans will also likely be welcomed by financial market participants, who have called for greater clarity and certainty in the cryptocurrency space. The regulatory framework will help to reduce the risks associated with investing in cryptocurrencies, and will help to promote the growth and development of the industry.

Overall, the government's plans to regulate the cryptocurrency industry in Australia are a positive step towards ensuring the safety and stability of the country's financial system. By providing a clear framework for licensing and regulation, the government will help to protect consumers and promote the growth of the industry.