The burgeoning sphere of digital assets in Australia faces a challenging future, as a recent rejection of a crypto bill places the nation on a precipice between protection and open markets. Concerns have arisen over the fate of Australian investors in the light of the Senators’ decision. The Digital Assets (Market Regulation) Bill’s author, Senator Andrew Bragg, argues that if his proposition is dismissed, the Australian market may become increasingly vulnerable and consumer protection will decline.
The Senate Committee on Economics Legislation recommended the Senate rebuff Bragg’s bill in early September, suggesting ongoing consultation with industry experts towards creating cryptocurrency laws instead. Critics argue that the bill simply doesn’t mesh with the existing regulatory landscape, raising significant concerns about regulatory arbitrage and possible detrimental outcomes for the industry.
Speaking out against the recommendation, Senator Bragg warns that such a move places consumers at the mercy of an unregulated market whilst simultaneously pushing potentially lucrative investment opportunities to look outside Australia. Bragg further contended that the decision to reject his bill was largely driven by political undercurrents, largely owing to the substantial representation of Labor Party members on the Senate Committee.
Yet, others see this rejection in a different light. Liam Hennessey, a partner at international law firm Clyde & Co., suggested that the rejection might be linked more to a different regulatory process. This sentiment was echoed by the Treasury’s consultation paper on the government’s ongoing “token mapping” exercise. According to Hennessey, the recommended rejection doesn’t necessarily signify a setback for crypto regulation in Australia.
Despite the political push-and-pull, deeper analysis reveals a progressive trend even in the rejection. While Senator Bragg’s bill may not pass in its current form, the industry feedback and consideration it has garnered could provide crucial insights to inform the government’s approach towards forming effective crypto regulations.
In conclusion, Australia’s deferral of regulations might seem like a step back, but it also reflects a careful approach towards constructing a comprehensive framework, designed to protect consumer interests without stifling innovation. However, with the spectre of an unregulated market looming on the horizon, the clock is ticking for the Australian government to finally establish market-friendly crypto regulations. As the cryptocurrency industry grows globally, it’s becoming ever more crucial for Australia to clarify its regulatory stance.
Source: Cointelegraph
