Australian Crypto Exchanges Back New Treasury Proposals for Better Regulation
Summary:
Australian crypto exchanges have welcomed new proposals from the Australian Treasury to regulate cryptocurrency platforms under existing financial services laws. The newly suggested regulations aim to offer a growth-friendly framework for the industry, give regulatory certainty to crypto entities and protect consumers. While most industry leaders lauded the regulations as a significant advancement for the Australian crypto industry, some expressed concerns that they might conform the crypto industry to traditional financial norms. The proposals aim to align Australia's regulatory framework with global standards, particularly the European Union's advancements in crypto regulation.
Crypto exchanges situated in Australia have voiced their support for the Australian Treasury's decision to regulate these exchanges under pre-existing financial services licensing measures. The Treasury issued a consultation paper on 16th October, revealing a new suite of suggested regulations. The guidelines focused on three primary areas: offering a framework that encourages growth and innovation in the industry, providing crypto service providers with regulatory certainty and protecting everyday consumers and their assets. The consultation paper hints that Australian crypto exchanges will be regulated under the existing financial services laws.
BTC Markets' CEO, Caroline Bowler, expressed pleasure over the new regulations, considering them a significant advancement for cryptocurrency in Australia. She stated that digital assets are evidently the future of financial services and it is crucial for the country to keep up with global peers by implementing a solid regulatory framework. Independent Reserve's CEO, Adrian Przelozny, also lauded the government for its recommendations to introduce more robust regulations. He believes these new proposals will boost investment, bring certainty to the sector, and most importantly, enhance consumer protection. Swyftx’s General counsel, Adam Percy, concurred with the Treasury’s proposals, stating that investor safety in crypto and allowing space for innovation should be the main focus.
However, Jonathon Miller, Kraken Australia's Managing Director, expressed concerns that the new regulations might force the crypto industry into conforming with traditional financial regulations. He remarked that the regulatory process in Australia has been slower compared to global peers, yet he acknowledged the consultation paper as a step towards providing regulatory certainty for crypto companies operating in Australia.
Liam Hennessy, a partner at Clyde & Co, an international law firm involved in the consultation process, mentioned that the proposals from the Treasury "make sense" for the Australian crypto industry. He noted that these new rules will enable the nation to align with places like the European Union, which are considerably ahead in their efforts to efficiently regulate crypto. Furthermore, he stated that the Australian Financial Services (AFS) licensing regime can be complex, suggesting that local cryptocurrency exchanges and digital asset service providers should start preparing their applications ahead of time.
Published At
10/16/2023 4:43:13 AM
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