Australia will regulate cryptocurrency to reform the payment industry | crypto

This move is the country’s latest move to control the power of technology companies.

Australia will create a licensing framework for cryptocurrency exchanges and consider launching a retail central bank digital currency as part of the largest reform of its payments industry in 25 years.

The country will also expand its payment law to cover online transaction providers such as Apple Inc and Alphabet Inc’s Google, as well as buy-before-pay (BNPL) providers such as Afterpay Ltd, ending its operations without direct supervision.

“If we do not reform the current framework, then it will be Silicon Valley that determines the future of our payment system,” Treasury Secretary Josh Friedenberg said in a prepared speech provided to Reuters. “Australia must retain sovereignty over our payment system.”

Australia’s conservative coalition government has been at the forefront Global efforts to contain large technology companies Because it is preparing for the federal election in May next year.

Liberal Party-National GovernmentAfter falling behind the left-leaning Labor Party in most opinion polls, this year has allowed large technology companies to pay content fees to media companies and assume legal responsibility for defamation on their platforms.

(Are you talking about the Liberal National Government?)

Frydenberg said in prepared comments that the government will begin negotiations early next year on the establishment of a licensing framework for digital exchanges, which will allow consumers to buy and sell crypto assets in a regulated environment.

He added that there will also be consultations on the regulatory system for companies holding encrypted assets on behalf of consumers and the feasibility of the central bank’s digital currency, and provide recommendations before the end of 2022.

‘Consumer benefits’

Australia’s banks and other payment industry players have long sought to apply the rules to all parties involved in processing transactions.

A spokesperson for Afterpay has agreed to be acquired by Square Inc, the payment company of Twitter Inc founder Jack Dorsey. The company expressed support for “any method that takes into account the innovation and competition that Afterpay brings to the market for consumers.”

Spokespersons for Apple and Google could not be immediately reached for comment.