Australia Crypto Regulation: Breakthrough Legislation Expected After Election

The recent Australian Federal Election saw millions of potential pro-crypto voters, yet discussion around Australian crypto regulation remained surprisingly muted during the campaign. Despite its low profile in the public debate, the outcome points towards a significant development: the likely enactment of comprehensive crypto laws.

Why Australia Election Crypto Wasn’t a Headline Issue

While estimates suggested a large number of voters interested in crypto, the topic didn’t become a major campaign focus. Industry figures, like Independent Reserve founder Adrian Przelozny, noted this as a missed opportunity. The consensus is that parties avoided making crypto a central theme, perhaps fearing it could alienate voters or seem too niche.

The Promise of Crypto Laws Australia: A Bipartisan Commitment

The positive news for the industry is the strong indication from both major parties – the ruling Labor Party (ALP) and the opposition Liberal Party – that crypto regulation is finally on the agenda after years of delay. Both parties have engaged with the industry and plan to introduce legislation developed in consultation with stakeholders.

• The Liberal Party, through Shadow Treasurer Angus Taylor, promised draft regulations within 100 days if elected.
• The current Treasury has draft bills on ‘regulating digital asset platforms’ and ‘payments system modernization’ slated for release this quarter.

Amy-Rose Goodey, CEO of the Digital Economy Council of Australia, confirmed that both sides are equally invested in getting this draft legislation passed, signaling a better position for the industry compared to previous years.

Minor Parties and Their Crypto Policy Australia Stances

Beyond the major parties, voters had choices with differing views on crypto:

• The Libertarian Party released a detailed Bitcoin policy advocating for a national Bitcoin Reserve and legal tender status.
• The Greens party has not publicly outlined a specific position on crypto.
• One Nation has campaigned against practices like debanking and the introduction of Central Bank Digital Currencies (CBDCs).

Ending a Decade of Inaction on Digital Assets Australia

Australia has a history of examining digital assets, with the first parliamentary inquiry dating back to 2014. However, this didn’t translate into regulatory action for over a decade, leading to concerns about stagnation and talent leaving for jurisdictions with clearer rules.

The ALP government, while initially slow, has shown a recent shift. Treasurer Jim Chalmers acknowledged the significant opportunities digital assets present for the economy. His office indicated exposure draft legislation would be released in 2025 for consultation, with reforms phased in over time.

The opposition has criticized the government’s pace, pointing to the lack of a clear blockchain policy initially and attributing action partly to events like the FTX collapse. They argue the government’s proposed timeline is too slow compared to their own commitment to faster action.

Industry Engagement and Global Context

The Treasury has reportedly increased resources dedicated to drafting legislation, indicating progress. While the ALP’s approach is seen as cautious, it prioritizes consumer protection.

Global developments, such as potential pro-crypto shifts in the US and regulatory clarity in the UK, are seen as factors pushing Australia to act. Industry leaders like Coinbase’s John O’Loghlen have called for a dedicated Crypto-Asset Taskforce to accelerate the process.

The Australian Securities and Investments Commission (ASIC) has also released its own regulatory proposals. While ASIC operates independently, its actions will be guided by the legislative framework set by the government.

What the Future Holds for Australian Crypto Regulation

Despite the election outcome, the key takeaway is the bipartisan consensus on the necessity of regulation for digital assets Australia. Both major parties have engaged closely with the industry and agree on the main issues that need addressing.

While the Liberal Party is perceived by some as more enthusiastic due to past advocacy, the ALP has converged on similar regulatory priorities. Regardless of who forms government, the political will appears to be present to finally deliver clear crypto laws Australia.

The industry is cautiously optimistic, viewing 2025 as a critical year for achieving the regulatory certainty needed to foster innovation and growth in the sector.

In conclusion, the Australian election, while not a crypto referendum, has solidified the path towards clear Australian crypto regulation. The commitment from both major parties, informed by industry consultation and influenced by global trends, means that comprehensive crypto laws Australia are finally within reach, promising a more certain future for digital assets Australia.