Urgent: Australian Crypto Regulation Demanded After Election

Following the recent Australian election, the cryptocurrency industry is making an urgent plea to the reelected Labor government. The message is clear: make good on promises and prioritize comprehensive Australian crypto regulation early in the new term. The industry fears Australia is falling behind global counterparts that are rapidly implementing clear frameworks for digital assets.

Why is New Crypto Law Australia Critical Now?

Industry leaders emphasize the pressing need for regulatory clarity. Countries like the UK and the EU (with MiCA) are moving forward with dedicated digital asset laws. This global shift highlights the necessity for crypto law Australia to catch up. Without a clear framework, businesses and talent may leave for markets with more certainty, potentially hindering innovation and investment in Australia digital assets.

Key figures from major exchanges and firms are vocal:

• Joy Lam from Binance notes consultations have been ongoing since late 2023 and stresses that “Timing is really quite critical now.”
• John O’Loghlen from Coinbase calls for a Crypto-Asset Taskforce within the first 100 days to protect consumers, promote innovation, and stop talent/capital exodus.
• Caroline Bowler from BTC Markets sees the election result setting the stage for meaningful progress.

What Has the Australian Government Crypto Approach Been?

While some criticize the Labor government’s first term for a lack of action, industry figures report an evolution in the Australian government crypto approach. Initial proposals have shifted towards a more positive stance, outlined in the Treasury’s March statement. This statement signals a willingness to integrate digital assets into existing financial services frameworks, like using the Australian Financial Services License (AFSL) regime for Digital Asset Platforms (DAPs) and payment stablecoins. This pragmatic approach, focusing initially on centralized providers and asset custody, is seen as a sensible step by industry players like Joy Lam, who states, “Obviously, we don’t need to reinvent the wheel.”

Progress on Crypto Policy Australia

The Treasury’s plan indicates exposure draft legislation on “regulating digital asset platforms” and “payments system modernization” is expected this year, possibly by the end of June. While the exact timeline remains uncertain for some, the direction signals progress on crypto policy Australia. The government also plans to review the Enhanced Regulatory Sandbox to support innovative startups and explore opportunities in tokenization, reflecting industry feedback and international developments.

Dea Markovy from Fireblocks points out that significant groundwork is already complete, and the overall outlook is positive regarding licensing for crypto intermediaries. The securities regulator, ASIC, has also provided its own guidance (INFO 225), detailing how various tokens and intermediation services might fit within existing securities laws, providing a transition period. This guidance suggests a nuanced view, where assets like NFTs or memecoins might not be considered financial products, while yield-bearing stablecoins could be.

Addressing Debanking Through Australian Crypto Regulation

A significant issue for the industry has been debanking – financial institutions being hesitant or unwilling to provide services to crypto businesses. Industry representatives believe that clear Australian crypto regulation would largely resolve this. A clean licensing framework provides banks with the necessary comfort by mitigating risk. Additional guidance specifically for banks may also be needed to fully address the issue.

In summary, the Australian crypto industry is unified in its call for swift action from the reelected government. Building on the groundwork laid, implementing clear and comprehensive Australian crypto regulation is viewed as essential for protecting consumers, fostering innovation, attracting capital, and ensuring Australia remains competitive in the rapidly evolving global digital asset landscape.