After spending months under the purview of an Australian Senate Inquiry, the path-breaking payment technology Bitcoin got a temporary bail from being regulated in Oz land.
“Bitcoin does not need to be regulated at this stage”
The facts are derived from the very recent statements from the Reserve Bank of Australia (RBA) which believes Bitcoin does not need to be regulated at this stage. The finance regulators claimed that the digital currency pose no threats to the traditional finance system, for it is not accessed by a sizable chunk of its population. Therefore, regulating it will simply add more costs to the national exchequer than providing any real benefit.
On Accommodating Bitcoin within the Existing Regulatory Framework
In the same letter, the RBA further ensured to look towards regulating digital currencies in the event that its use grows significantly. The bank therefore would be liable to thoroughly impose the preset standards to modulate it within the existing financial system. It meanwhile also opted to wait for the final report of the Financial System Enquiry to see if digital currencies such as Bitcoin could be accommodated easily with the existing regulatory framework, when treated as a method of exchange.
Bitcoin Regulation – Cost/Benefit?
“At present, however, the Bank’s judgement is that the current very limited use of digital currencies means that they do not raise any significant concerns with respect to competition, efficiency or risk to the financial system,” wrote RBA. “Accordingly, it is currently unlikely that any benefits of regulation would outweigh the potential costs.”
The bank meanwhile reminded its official counterparts about the risks associated with the digital currencies that somewhat are not theirs to be regulated in the first place. They include authorities concerned with taxation, counter-terrorism, consumer protection and anti-money laundering, all of which, as per RBA, needs to put immediate focus on Bitcoin activities.