The Australian government has pledged to establish a framework for regulating crypto service providers in 2023, according to the nation’s Treasury on Wednesday.
The government is moving to modernize Australia’s financial system in the wake of the collapse of the investment fund FTX.
“Unfortunately, our regulatory architecture has not kept pace with changes in the market,” said Australia’s Treasurer Jim Chalmers and Assistant Treasurer and Minister of Financial Services Stephen Jones.
The government is assessing which tokens or digital assets should be regulated by financial services laws. They are conducting this work as part of their token mapping project, which includes uncovering the characteristics of all digital asset tokens in Australia. Their goal is to eliminate bad actors.
The framework for regulating crypto service providers will be part of “a strategic plan for the payments system” of Australia, which will be released in the first quarter of 2023.