Australian government no Hurry to Adopt Law to Regulate crypto
2023.03.06 04:26
Australian government no Hurry to Adopt Law to Regulate crypto
By Tiffany Smith
Budrigannews.com – According to internal government documents, the government appears to want to take its time to get a full picture of the industry, so crypto legislation in Australia could be delayed beyond 2024.
According to the documents, which The Australian Financial Review was able to obtain through the use of freedom of information laws, the government plans to release consultation documents in the second quarter of 2023 and hold stakeholder roundtables on crypto licensing and custody in the third quarter.
The Australian Labor government’s token mapping exercise was announced three months after it came to power last year, and submissions closed on March 3. The industry has been waiting to see the next steps.
Open consultation! The consultation paper for token mapping was made public today. This consultation is one step in a series of reforms meant to establish a suitable regulatory framework for the crypto industry. Understand paper and submit sees @ @ASIC_Connect @AUSTRAC pic.twitter.com/OGHuZEGvDp
The documents, on the other hand, say that the final submissions to the cabinet won’t be made until the end of the year, which could delay any decisions on crypto legislation well into 2024 and beyond.
According to one departmental briefing, crypto businesses and consumer groups are likely to be dissatisfied with the lengthy timeline.
A brief from Australian Treasurer Jim Chalmers, which was seen by AFR, stated, “Treasury expects some stakeholders to be disappointed with the perceived delay in implementing a licensing regime.” This statement was made in the document.
For instance, “businesses seeking regulatory legitimacy” and “consumer groups seeking immediate protections.”
However, the Treasury is of the opinion that, as a result of the collapse of FTX, the demand for cryptocurrencies has “significantly weakened,” which may provide it with additional time to formulate regulations.
“Depository considers these worries are fairly alleviated by the ongoing economic situations bringing about less shopper interest for crypto resources; and the necessity of finishing the token mapping exercise to clarify the practical operation of any new licensing framework.”
In the meantime, the documents also reveal that the government has established a specialized “crypto policy unit” within the Treasury department.
The crypto policy unit is said to have mentioned potential requirements for crypto licenses during a meeting with treasury in November of last year. These potential requirements include obligations to report bad actors and scams in the industry, capital requirements, and “fit and proper person” tests. The unit also talked about making consumer protections stronger.
In September of the previous year, a survey conducted by the Australian crypto exchange Swyftx revealed that approximately one million Australians planned to purchase cryptocurrency for the first time over the course of the next year. This would bring the total number of people who own cryptocurrency in the nation to over five million.
