• A committee in Australia has proposed measures to boost the crypto industry

  • The panel in charge of reviewing the use of digital assets in Australia, the Select Committee on Australia as a Technology and Financial Centre, believes the country requires a strong policy and regulatory framework to encourage crypto adoption.

    This was revealed in a report earlier today, which stated that the committee believes the crypto space is one of the fastest-growing areas of finance.

    According to the report, the committee published a draft that includes measures that will allow Australia to effectively enter the crypto space.

    A regulatory framework, according to the committee, would protect consumers, encourage investment, increase market competition, and position Australia as a jurisdiction where innovation can thrive.

    Andrew Bragg, the Committee’s Chair and a Senator from the conservative Liberal Party, added that a crypto regulatory framework would help Australia compete with global financial hubs like Singapore and the United Kingdom.

    Senator Bragg also hopes that the framework will put a stop to de-banking, a practice in which lenders close the accounts of clients deemed high-risk. According to him, this practice is suffocating growth by killing too many small businesses in Australia.

    Moving quickly to promote growth

    According to reports, the draft made three recommendations, which Bragg said he hopes the governing coalition will adopt in the coming months. In doing so, he anticipates that the recommendations will become law following the Federal election, which is scheduled for early next year.

    The first recommendation of the Select Committee on Australia as a Technology and Financial Centre is that the government establish a market licensing regime for digital currency exchanges.

    The licensing regime, according to the panel, should include measures such as checking capital adequacy, audits, and conducting responsible person tests under the Treasury portfolio.

    Furthermore, the committee proposed that the government establish a custody or depository regime for digital assets under the Treasury portfolio with minimal standards.

    In addition, the committee recommended that the government conduct a token mapping exercise. This step, according to the panel, would aid in determining the best way to categorize various digital assets in Australia.

    Australia’s push for a crypto regulatory framework comes at a time when the cryptocurrency market is on the rise. The market capitalization has risen to $2.62 trillion (£1.90) as a result of this rally. Bitcoin (BTC/USD), the most valuable cryptocurrency by market capitalization, is leading this rally, having gained 6.32 percent in 24 hours to trade at $66,477.74 (£48,097.64).

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