When it comes to establishing itself as a significant nexus for web3 technologies, Australia has a unique opportunity. Faryar Shirazad, Chief Policy Officer at Coinbase, emphasized the crucial role of unequivocal regulatory guidelines in realizing this goal, in his earnest appeal to the legislative assembly. In a Senate hearing held on July 25, legislators pondered a far-reaching crypto bill, designed to delineate and govern various dimensions of the burgeoning local market, drawing inference from Europe’s Market In Crypto Assets Regulation (MICA).
Shirazad assertively advocated for swift and decisive regulatory action, indicating that such an approach enables Coinbase and other crypto companies to devise and deploy market-specific solutions and infrastructures. The claims he made regarding timeframes shed light on the timeframe urgency for regulators far and wide. According to his projection, MICA will be activated not later than early 2025. Meanwhile, participants in the large, global crypto markets are synchronizing their rhythms with this target deadline.
Indeed, the transition towards well-defined regulations has not been devoid of bumps in the road, with legal struggles against organizations like the Securities and Exchange Commission (SEC) being central to the efforts made by industry leaders to elicit transparency in these rules. In this backdrop, the SEC’s stepped up regulatory drive, which includes legal actions initiated against Coinbase and Binance, dealing another blow to the industry already fighting disruptive market forces.
As a solution, the proposed Digital Asset (Market Regulation) Bill 2023 seems to be the white knight required to navigate the ambiguities of a rapidly evolving industry. The crypto market in Australia has been gaining increased momentum and has been subjected to intensified regulatory examination. However, compared to Europe and Hong Kong that have specific regulations and licensing systems in place, Australia seems to be lagging.
This sentiment is echoed by Jonathan Miller, the head of Kraken Australia. He pointed out the challenges imposed by ambiguous regulations on the management of banking in crypto. His faith in Australia’s potential remains unswerved, emphasizing the commitment of Kraken to stay in the local market despite the regulatory obstacle course.
Senator Andrew Bragg, who introduced the new bill, insisted that progress has been slower than preferred. He asserted that rapid action is essential to re-enter the race, protect users and position Australia as a digital asset hub. With his clarion call to “act now,” industry insiders anticipate a significant shift in Australia’s regulatory landscape.
Source: Cryptonews
