Policy Update - October #2
Consultation starts on a new regulatory framework for digital asset platforms
Treasury has released a long-awaited consultation paper on proposals for regulating digital asset platforms. This follows consultation back in February on 'token mapping' and focuses on regulating and licensing intermediaries.
The paper proposes expanding the financial services laws to these platforms by creating a new financial product called a 'digital asset facility' for holding digital assets or assets backing digital assets. Operating a digital asset facility would require an AFS license, with general AFSL obligations applying. The paper also considers other minimum standards and requirements for custody and reporting.
The Government has signaled it plans to progress these proposals to draft legislation next year.
New legislation to regulate digital payments services
The Government is now consulting on exposure draft legislation to implement reforms to the Payment Systems (Regulation) Act 1998.
The proposed legislation largely reflects the previous consultation paper on these changes from June. Broadly it would:
Update the PSRA to ensure the Reserve Bank of Australia has the ability to regulate new and emerging payment systems, such as digital wallet providers;
Introduce a new ministerial designation power that would allow particular payments services or platforms that present risks of national significance to be subject to additional oversight by appropriate regulators.
New consultation paper on "payday super"
Treasury has released a consultation paper on the implementation of Government's Budget commitment to require employers to pay superannuation guarantee entitlements on the same day that they pay employees salary and wages, including a redesigned compliance framework.
