Australia proposes new laws to regulate crypto

Australia will create a licensing framework for cryptocurrency exchanges and consider launching a retail central bank digital currency as part of the biggest overhaul of its payments industry in a quarter of a century.

The country will also broaden its payment laws to cover online transaction providers like Apple Inc and Alphabet Inc s Google as well as buy-now-pay-later (BNPL) providers like Afterpay Ltd_ ending their run of operating without direct supervision.

 If we do not reform the current framework_ it will be Silicon Valley that determines the future of our payment system_ Treasurer Josh Frydenberg said in prepared speech notes supplied to Reuters.  Australia must retain its sovereignty over our payment system.

Australia s conservative coalition government has been at the forefront of global efforts to rein in large technology companies as it prepares for a federal election by next May.

The Liberal-National government_ which is behind the left-leaning Labor Party in most polls_ has already this year made Big Tech pay media companies for content and take legal liability for defamation on their platforms.

The government will begin consultation early next year on establishing a licensing framework for digital exchanges_ which would allow the purchase and sale of crypto assets by consumers within a regulated environment_ Frydenberg said in the prepared remarks.

There would also be consultation on a regulatory regime for businesses that hold crypto assets on behalf of consumers_ and on the feasibility of a central bank digital currency_ he added_ with advice to be provided by the end of 2022.

 Consumer benefits
Australia s banks and other payments industry participants have long campaigned for the rules to apply to all parties involved in processing transactions.

A spokesperson for Afterpay_ which has agreed to a buyout by Square Inc_ the payments firm of Twitter Inc founder Jack Dorsey_ said it supported  any approach that takes into account consumer benefits from the innovation and competition Afterpay has brought to the market .

Spokespeople for Apple and Google were not immediately available for comment.