Posted December 02, 2018 17:29:48 AUSTRALIA has announced it will allow a bitcoin exchange to become a subscription-based lending platform and payment provider.
The announcement comes just weeks after the Australian Financial Services Commission announced a number of steps to regulate and oversee digital currencies, including the launch of a bitcoin futures market.
The AFRSC announced it had created a Working Group to develop regulations around digital currencies in the coming months.
“The regulatory framework in Australia is evolving rapidly and is a good opportunity to bring digital currencies to the public market in a manner that allows them to be more widely used,” AFRSc chairperson Andrew Forrest said.
“Digital currencies are becoming increasingly valuable and becoming a major part of our financial infrastructure.”
“We’re also seeing a number people who have been actively engaged in the digital currency space come forward to lend to people in Australia, particularly those who are struggling to meet their monthly payments,” Forrest said in a statement.
“We’re very excited about the opportunities this will open up for Australia’s financial system.”
Bitcoin is an online digital currency created by an anonymous group of people, who use it to buy and sell things like bitcoins and other cryptocurrencies.
It’s traded using a peer-to-peer network and can be traded on various exchanges around the world.
Its popularity has grown in recent months as more people and businesses have adopted the digital cryptocurrency.
A number of Australian banks and financial institutions have also been taking a more active role in the virtual currency sector, and this could potentially lead to a greater level of regulation for the sector.
Newly elected Treasurer Scott Morrison announced on December 4 that the AFRs working group would be tasked with setting the regulations surrounding digital currencies.
Under the new regulations, financial institutions will be able to sell virtual currency assets to anyone, with the only requirements being that they have to be a regulated financial institution.
According to the AAFS, the group will also be tasked to monitor compliance with existing financial regulations and provide recommendations for the new digital currencies regulations.
It will be up to the government to decide what kind of regulation is appropriate.
Australia’s Financial Services Commissioner Tim Wilson has previously spoken about the potential risks that digital currencies pose for the financial sector, particularly the fact that virtual currencies are unregulated.
The AFRS is already working on regulations to tackle bitcoin and other virtual currencies, and Forrest said he hoped the group would focus on these areas as they develop regulations.
“I believe that the virtual currencies community is making a positive contribution to the development of the financial industry,” Forrest told news.com,au.
‘Digital currency should be regulated as a commodity’Read moreThe AAFs working definition of a digital currency is “an online digital commodity, which is an electronic form of payment and payment processing services used by a financial institution or a financial intermediary for settlement and for transactions involving the digital asset”.
“Digital currencies should be treated like commodities and not as a form of money, but should be subject to the same regulatory framework as any other commodity,” Forrest added.
While there are some legal issues that need to be resolved, Forrest said it was a good thing for the digital currencies community to have more access to regulation.
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