Australia Proposes New Laws that Will Regulate Cryptocurrencies and Online Transactions

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The Australian government just announced that it’s introducing a licensing framework that will regulate cryptocurrencies and BNPL. Since the pandemic started and many people’s lives shifted online, Australian online payments have exploded. Nearly half of Australians make payment from their phones, with about 55 million such payments processed every day.

The use of cryptocurrencies and online payments system is at an all-time high, prompting the government to take steps to regulate it. Instead of criminalizing cryptos like China or India, the Land Down Under is taking a more proactive approach in order to retain its sovereignty over its payment system.

The Biggest Online Payments Overhaul in 25 Years

Last week, Australia has its biggest overhaul of online and crypto payments in 25 years. Millions are processed in online and crypto payments per day, leading the country to overhaul its payment laws. The newly proposed licensing framework will cover online payment providers such as Google and Apple, as well as all buy-now-pay-later (BNPL) providers. So far, they’ve all operated without supervision, but things are about to change for the better.

Australia’s treasures Josh Frydenberg says that if the country doesn’t regulate these payments and crypto transactions now, the Silicon Valley will determine the future of Australia’s payment system. To retain its sovereignty, Australia’s otherwise conservative government has introduced a framework for new licenses. Consultations between high government officials are scheduled for early 2022. The government’s experts will then propose a licensing framework for digital exchanges that will essentially regulate crypto transactions.

At the same time, the new legal framework will also take a look at the possibility of a central bank digital currency.                By regulating BNPL companies, Australia is addressing the risk of debt and financial stress of these services. Experts believe that the country is moving in a proper direction. Australia is taking a proactive approach to regulation of cryptocurrencies and online payments in a time where many countries are criminalizing cryptos.

A Lot of Enthusiasm

Thanks to the positive approach, there’s plenty of optimism from industry participants to be involved in the legal framework. Australia has chosen to go the US way when it comes to Bitcoin and cryptos instead of following India and China who have banned them. US regulators believe that the country should introduce new legal framework to allow banks to facilitate ownership of crypto assets for its customers. While there has been no move so far, it may come sooner than expected.

That’s the direct opposite of India’s latest approach, with the government’s newly proposed laws allowing the authorities to address anyone dealing in crypto. Chinese regulators have banned the use of cryptocurrencies in the country, focusing their efforts on the digital yen instead.

It remains to be seen how Australia constructs its crypto and online payments network, but the narrative is obviously positive. It’s great news for Australia’s crypto investors and holders as well as anyone that prefers to pay online instead of using cash.