The Australian government has announced an ambitious approach to the entire government in regulating and integrating digital assets into the broader economy, inspired by work done in the European Union (EU) and Singapore.
In a white paper published by the Australian Treasury, The country’s government said it would embrace tokenization, real-world assets (RWAs), and the Central Bank Digital Currencies (CBDCs) as part of a broader push to modernize the financial system.
As a retail CBDC is ruled out today, the government sees a wholesale version of the CBDC and tokenized regulating infrastructure as the key to unlocking market efficiency and greater access to property.
The government said the Australian treasury, the Australian Securities and Investment Commission, as well as the Reserve Bank of Australia is planning to launch pilot tests that use tokenized currency, including Stablecoins, to resolve transactions to wholesale tokenized markets.
“Markets for tokenized properties can increase automation, reduce risk of regulating, reduce hopes for many financial mediars, simplify trading processes, reduce transaction costs, and provide a broader access to traditional unreasonable assets,” the report read.
The white paper also presents a licensing structure for crypto exchanges, which will be known in Australia as digital asset platforms (DAP).
DAPS operators will need to meet financial services obligations such as adequate capital and disclosure requirements while also using third-party custodies to store customer assets.
The government also plans Responding to concerns in the de-banking industry Through its DAP licensing regime, it said on white paper, to allow banking partners to better engage in risk management.
This anti-debanking effort in Australia follows proceeded to the US hearing On the topic, where Senator Tim Scott’s firm Action Firm aims to stop regulators from using “reputation risk” to hinder crypto companies from accessing banking railroads.
