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Australia drafts updated regulation for fintech space

Wednesday 8 December 2021 14:22 CET | News

Australia has drafted a new roadmap to bring financial technology regulation into the modern age, allowing for more flexibility in the fintech and payments area.

Treasurer Josh Frydenberg wants to expand what constitutes a payments system. That will suit a push by Reserve Bank of Australia Governor Phillip Lowe to broaden the definition. Existing rules from the 1990s are too narrow to include buy now, pay later companies such as Afterpay (APT.AX), digital wallets like those operated by Apple (AAPL.O), and cryptocurrency assets.

Second, Frydenberg would consolidate the fragmented oversight of payments providers. Combined with some red-tape removal, that should help level the regulatory playing field between incumbent banks and tech upstarts without stifling innovation.

However, the treasurer doesn’t seem keen on appointing a payments tsar, a key recommendation in the Farrell Review, one of three investigations he’s leaning on for the changes. With parliamentary legislation needed, however, that may yet change.

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Keywords: regulation, fintech, central bank, cryptocurrency
Categories: Banking & Fintech
Companies:
Countries: Australia
This article is part of category

Banking & Fintech