Are you one of the one in four Australians who owns cryptocurrency? Well, it’s about to get regulated by the Federal Government.
Cryptocurrency is a form of digital currency that does not have a central issuing or regulating authority. It exists through a decentralised online system where people can buy and trade it. It uses a technology called blockchain to keep track of who has how much, and transactions are recorded in a public ledger. It’s protected through encryption, and it can be stored on a digital wallet.
Exchanges holding more than $5 million worth of assets will now be required to hold a financial services license, issued by the corporate regulator ASIC, under a new plan that’s bolstered with specific obligations designed to stop Australians from getting ripped off by dodgy crypto traders while supporting the growth of the digital asset sector.
On today’s episode of The Briefing, we speak to Stephen Jones, the Minister for Financial Services whose spearheading this new regulation.
We’re going to ensure that they have proper dispute resolution processes. We’re going to ensure that they have appropriate liquidity, that is enough money on hand to meet current and expected requirements.
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