Australia brings new crypto scheme to protect its investors from financial risk

Australia, in an effort to protect its crypto investors from financial risk, has launched a three-stage plan. The Australian government’s new plan aims to introduce legislation to regulate the mapping of crypto tokens, strengthen regulatory oversight of crypto transactions, and ensure the protection of crypto users. death. The three-point plan seeks to further regulate the domestic cryptocurrency sector. The development comes as Australia has seen an uptick in its crypto culture. According to research firm Cointree, Australia is estimated to have 4.6 million crypto holders.

Australian Treasurer Jim Chalmers and Assistant Treasurer Stephen Jones released a joint statement on Friday, February 3, explaining the goal of the scheme. “The unsustainable business models used by some crypto asset trading companies have exposed consumers. Australian regulators are increasing their focus on crypto asset providers to ensure they meet their obligations to Australian consumers. issue a statement speak.

Australians have lost more than $81.5 million (about Rs. 650 crore) to crypto scams between January and May last year, says the Australian Competition and Consumer Commission (ACCC) ) revealed in an alarming report. report.

In September last year, the Australian federal police issued a new unit tasked with a one-off task to identify and resolve illicit money transfers facilitated through crypto-assets.

The ACCC is also working to enable automatic identification and removal of questionable and problematic crypto websites to protect its crypto community against financial risks.

“The government will reform the licensing and custody of crypto assets, especially for the subset of crypto assets currently outside the financial services regulatory framework. We will establish a set of obligations and operating standards for crypto asset service providers to ensure they keep assets adequately secure for customers,” the statement from the Australian treasurer said. more.

The country has released a consultation document detailing elements of the regulated crypto sector and those that require immediate attention.

“Token mapping seeks to build a common understanding of crypto assets in the Australian financial services regulatory landscape. This will explore how current regulation applies to the crypto sector and inform future policy options,” the consultation document says. read.

The government there has asked stakeholders to submit their feedback, which will be reviewed by regulators working on drafting a set of rules for presiding over cryptocurrencies.

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