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Australia Gets Strict On Big Tech Payment Systems

Treasurer Josh Frydenberg will today legislate a new power that will legislate Apple, Afterpay, Google, and any tech giant playing in the payment systems space much in the way the nation deals with the banking sector.

The Federal Government is moving towards a broader definite of what constitutes a payment service, giving it and the Reserve Bank of Australia more power to clamp down on various payment providers.

Among the changes will be a licensing regime for the ever-growing cryptocurrency sector to protect the more than 2 million Aussies currently investing in that space, and the ability for the Treasurer to classify platforms such as Apple Pay as payment systems, holding them to the same rigours as the banks.

The days of Apple’s iPhone chip being strictly limited to its own payment system are also numbered, with more than half of Australians now using this or similar digital wallets to make payments. Commonwealth Bank chief Matt Comyn has been critical of this fast growing, unregulated industry, pointing out that local banks fund the entire payment infrastructure, but are forced to give revenue to overseas giants.

“Australia must retain its sovereignty over our payment system”, Frydenberg said.

“Given the pace of change and those leading it, if we do not reform the current framework, it will be Silicon Valley that determines the future of our payments system.”

Frydenberg said the changes are “the most significant reforms to the payment system in 25 years.”

“It is how we will capitalise on the opportunity for Australia to lead the world in this emerging and fast-growing area which has almost endless potential applications across the economy.

“For businesses, these reforms will address the ambiguity that can exist about the regulatory and tax treatment of crypto assets and new payment methods. In doing so, it will drive even more consumer interest, facilitate even more new entrants and enable even more innovation to take place.

“As more Australians utilise these technologies and invest in digital assets, it is important that a robust regulatory regime underpins their interactions.”

 



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