Central Bank of Australia: Regulating cryptocurrency is useless

The Reserve Bank of Australia (RBA) has joined the growing number of regulators who wanted to express their views on bitcoins and the issue of regulating crypto-currencies.

In a speech to the Parliamentary Council on Taxes and Revenues, the head of the RBA’s payment services department, Tony Richards, said that the central bank noted “that Committee members have expressed interest in digital currencies or cryptocurrencies” and that his department has been actively monitoring the broader area of distributed ledger technology closely  over recent years.

The central bank does not see any problems in the sphere of crypto-currencies, which would require the intervention of the regulator, Richards explained.

Note that the position of the Central Bank of Australia on this issue is significantly different from the position expressed by the regulators of Vietnam and Indonesia, which decided to limit and even ban the use of cryptocurrency as a method of payment.

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Richards also drew the board’s attention to the “significant growth” of Bitcoin and Ethereum rates, suggesting that the main reason for this phenomenon could become “speculative demand” and the use of ICR’s cryptocurrency.

“The use of bitcoin and other digital currencies as a real payment method remains limited in Australia, as in other jurisdictions,” he added.

Although the RBA sees no problems in using cryptocurrency as a means of payment, Richards notes that among other things they can be used in an “illicit” economy.

“Their use may require the intervention of tax authorities, as well as represent significant difficulties for authorities involved in identifying and preventing crimes,” Richards said.

It is noteworthy that the representative of the bank acknowledged that any attempts to regulate the cryptocurrency themselves are likely to be unsuccessful. Instead, he called for the regulation of companies that work in this industry.

“The distributed and transboundary nature of digital currencies, such as bitcoin, means that regulation of the basic protocols of these systems is unlikely to succeed,” he said.

Recall that at the end of last month, the Securities and Investments Commission of Australia issued a guide about the ICO, which said that the requirements for such campaigns depend on their structure: some of them are regulated in accordance with the law on consumer protection, while others fall under the requirements of corporate law.

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