Australia’s Proposed Framework to Address Scams
The Australian Department of the Treasury is developing a new framework to tackle consumer and business scams. The proposed framework aims to apply sector-specific codes and standards to address various types of scams, including those related to banking and cryptocurrencies.
The framework suggests implementing mandatory industry codes for different sectors, such as banks, telecommunications providers, and digital communications platforms. It also includes a category for “future sectors” like cryptocurrencies and NFTs.
The goal is to assign clear roles and responsibilities to government and private entities involved in combating scams. The framework emphasizes the need for measures to prevent, detect, disrupt, and respond to scams while promoting the sharing of scam intelligence across sectors.
This initiative comes in response to the rising prevalence of scams in Australia. The Treasury is inviting comments on the proposal until January 29, 2024, with the aim of enhancing existing efforts to combat fraudulent activities.
Australia’s Regulation of Cryptocurrency Exchanges
Australia is working on regulating cryptocurrency exchanges under existing financial services laws. Rather than introducing new rules specifically for cryptocurrencies, these exchanges will fall under the current regulatory framework.
In October, Australia’s Treasury announced plans to release draft legislation covering licensing and custody rules for crypto asset providers by 2024. Once enacted, digital asset exchanges will have 12 months to transition to the new regulatory framework.
This move demonstrates Australia’s commitment to formulating comprehensive crypto regulation policies. The proposal requires crypto exchanges holding a certain amount of assets to obtain an Australian Financial Services license from the Australian Securities and Investments Commission.
The Treasury is inviting written submissions on the proposal until December 1, 2023. A joint report by the Treasury and the Reserve Bank of Australia on central bank digital currency research in Australia is also expected in mid-2024.
Hot Take: Australia Taking Action Against Scams and Cryptocurrency Regulation
Australia’s Department of the Treasury is actively addressing scams through a proposed framework that includes sector-specific codes and standards. This initiative aims to combat scams related to banking and cryptocurrencies by assigning clear roles and responsibilities to government and private entities.
Additionally, Australia is working on regulating cryptocurrency exchanges under existing financial services laws. The proposed legislation covers licensing and custody rules for crypto asset providers, ensuring a comprehensive regulatory framework for digital asset exchanges.
These actions reflect Australia’s commitment to protecting consumers and businesses from scams while promoting responsible practices in the cryptocurrency industry.
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