Australia has proposed new rules to govern the widespread implementation of technologies like crypto, CBDCs, and tokenization as part of its efforts to modernize the economy with digital assets.
In a whitepaper, the Australian Treasury noted that it would work with the Australian Securities and Investment Commission and the Reserve Bank of Australia to pilot programs using tokenized money, such as stablecoins, to settle transactions.
The regulators also proposed a licensing structure for crypto exchanges, called Digital Asset Platforms (DAPs). DAPS will be required to meet certain financial services standards, including capital levels and privacy disclosures, and must use third-party custodians to store customer assets.
A Clear Crypto Framework
This news follows the launch of the Markets in Crypto Assets (MiCA) regulations by the European Union. MiCA is a comprehensive legal framework for the issuance, investment, and trading of crypto assets across the EU, and it has been viewed by many as a global benchmark for crypto regulation.
Establishing a transparent regulatory framework creates an environment with clear boundaries, allowing companies to build new products without fear of legal repercussions. The lack of a clear crypto framework in the U.S. has often been criticized as a hindrance to innovation.
Paying Crypto Dividends
This assertion is supported by Singapore’s approach to digital assets. The country has strived to be a leader in financial technology, and in 2019, Singapore rolled out its cryptocurrency regulations framework known as the Payment Services Act (PSA).
This framework gives the Monetary Authority of Singapore jurisdiction over companies offering digital payment token (DPT) services, including activities like operating exchanges, trading DPTs, and facilitating wallets.
The early groundwork laid by Singapore is paying dividends. According to Cointelegraph, the country has become a key destination for Web3 companies, with Singapore issuing twice as many crypto licenses in 2024 as it did in 2023.
Research from ApeX Protocol found that Singapore is home to 1,600 blockchain patents, 2,433 jobs in the industry, and 81 crypto exchanges, which—as Cointelegraph pointed out—are impressive numbers for a country with a population of less than 6 million people.
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