The Australian government recently introduced a preposition for the changes in financial transaction regulations. The ban could target anyone who makes transfers exceeding $10,000, with the fine being more than $20,000. This preposition could bring a lot of change for the financial world in Australia, but most importantly it could boost the cryptocurrency scene there, where the blockchain-based payment methods are already quite popular and the country has openly declared its desire to become a worldwide leader in blockchain adoption
What to expect from the new proposal?
The Reserve Bank of Australia came up with this proposal in order to fight the black economy, which entails the part of the country's economy that goes untaxed and unmonitored. According to the International Monetary Fund, however, Australia does not have a huge black economy problem, which means that this decision must have some other purpose behind it.
Australia is on a mission to prevent the financial crimes in the country, with the aim to eliminate money laundering practices completely and this new move can be seen as a part of this plan, but the society seems to think there must be some ulterior motive.
A Chance for the crypto industry
The proposal has not yet been approved, but in case it does get approved, this will be huge for the crypto industry which will gain popularity immediately. Blockchain-based crypto payments are not regulated and there are no limits on the number of assets you can transfer using this technology. Cryptocurrency has already become a huge part of Australian businesses and entertainment services. For example, Australian casinos were among the first to start catering to the crypto players, offering them payments in crypto in real-life and online casinos, as well as creating games designed specifically for those paying with bitcoin. Now bitcoin casinos continue to become more popular, and the number of people who want to try something new and play bitcoin games is only increasing. Unlike the entertainment industry and casinos other businesses have not yet embraced this payment method, but it is slowly but steadily becoming mainstream across the country. This limitation will only encourage people to turn to crypto transactions that require much less effort and are all-around easier to conduct and are not regulated.
The traditional banking services are already getting enough hate because of their unfavorable offers and if this proposal becomes a part of the bank’s services, the negative attitudes will only increase.
Is the black economy to blame?
Before the final decision is made, The reserve bank, along with Australian authorities will hold a public hearing about the subject, mostly because this decision has gotten so much mixed feedback. We are seeing mostly negative opinions coming from the economists who say that this move only serves Banks’ purposes and won’t improve the safety of transactions or prevent any criminal activity. Some even labeled the decision of the bank as an attack on the basic liberty of free exchange, saying that the authorities want to increase their power over the transaction and tighten their grip. Considering the fact that Australia has one of the smallest “black economies” and the state is using that as an example to justify its newest proposal, there might be more to what the critics are saying. This decision makes crypto transactions look much more appealing and probably more people will start looking into it if the proposal passes.
One thing is clear, Australia is going through a transformative stage of its financial systems. Whether bitcoin will take over, the people will have to deal with strict regulations around financial transactions in the next few months. We will see more clearly in what direction the country wants to take its financial sector. Right now, the reactions have been mostly negative but as more public hearings are being held around the topic, different opinions will be voiced, encouraging this decision as well.