Australia’s burgeoning crypto industry risks falling behind other emerging markets, with established fintech hubs such as Bermuda, Mauritius, and Nigeria outpacing its progress. According to Loretta Joseph, Chair of the Australian Digital Financial Standards Advisory Council (ADFSAC), Australia must move quickly to develop and implement robust crypto regulations to remain competitive.
In response to these concerns, the Australian Treasury ran consultations earlier this year for its “token mapping” exercise, which aims to classify different crypto assets. A subsequent paper on a possible licensing framework is expected in mid-2023, with roundtables on crypto licenses scheduled for the third quarter. Additionally, there’s a private bill intended to expedite crypto regulation.
Despite these efforts, Joseph remains skeptical of Australia’s regulatory progress, especially considering how quickly other countries have adopted crypto-friendly measures to foster innovation. For instance, Bermuda has signaled support for a regulated crypto industry, while Mauritius and Nigeria have made strides in recent years with landmark regulations and policy-making efforts.
In Joseph’s view, Australia’s crypto ecosystem cannot be properly regulated through existing legislation alone. Therefore, the country should either update or adopt new laws that encourage innovation and growth within the space. She emphasizes the importance of collaboration between industry, academia, policymakers, and government bodies to devise effective solutions.
Education on crypto is also crucial to the ADFSAC’s mission, with Joseph remarking that digital wallets should be as user-friendly as possible. To create coherent strategies, Australia should align itself with international financial regulators like the International Organization of Securities Commissions (IOSCO), Financial Action Task Force (FATF), and the Financial Stability Board (FSB).
Joseph predicts that governmental G7 and G20 forums will begin enforcing crypto regulations “very soon” and that choosing jurisdictions with low regulatory hurdles will prove detrimental in the long run. She sees legal clarity as essential for businesses operating in the crypto space, which Australia must strive to achieve.
Source: Cointelegraph
