Australian Government Must Hasten Crypto Regulations
The chair of a new crypto think tank has warned that the Australian government must hasten its efforts in creating crypto regulations or else risk lagging behind other developing markets.
Loretta Joseph, who is the chair of the recently established Australian Digital Financial Standards Advisory Council (ADFSAC) – an organization under the ADC Forum – cautioned Cointelegraph that Australia may lag behind other countries in terms of formulating regulations.
Earlier in 2021, Australia’s Treasury held discussions on its “token mapping” initiative to categorise different crypto assets. A paper discussing potential licensing structures is predicted to be released in mid-2023, with roundtable talks on crypto licences anticipated to occur during the third quarter. Additionally, there is a private bill that aims to speed up crypto regulation.
Joseph cautioned, however, that the rate of regulatory advancement in the nation is still too sluggish.
“It really frustrates me when I travel to countries such as Bermuda, Mauritius and Nigeria and find that they are advancing faster than my own,” Joseph remarked, emphasizing the positive effect that decentralized technology can have on people worldwide.
Bermuda has indicated its endorsement of a regulated cryptocurrency industry, while in more recent years, Mauritius and Nigeria have been involved in formulating regulations or policies for their respective industries.
Joseph declared that the majority of the cryptocurrency sector in Australia is not encompassed by current laws, and that the nation must consider either revising or introducing new regulations to encourage and develop innovation.
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Joseph has been involved in drafting crypto policy and legislation since around 2017, aiding Bermuda in creating its laws on digital currency businesses which were approved in 2018.
She highlighted the importance of establishing ADFSAC in order to facilitate collaboration between the industry, academia, policymakers, and government, noting that she has “never been able to write a piece of legislation without the input of everybody at the table.”
“She emphasized the importance of think tanks for initiating the dialogue,” she added.
Joseph stated, “Give me a phone and let me download a wallet for you. Let’s evaluate how straightforward it is to use and then we’ll talk about why you don’t like it.” Education on crypto will also be a major component of the new institute.
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Joseph believes that Australia should adhere to the standards set by international financial organizations such as the International Organization of Securities Commissions (IOSCO), the Financial Action Task Force (FATF), and the Financial Stability Board (FSB).
Joseph believes that the G7 and G20 governmental forms will begin to implement crypto regulations “very soon,” and businesses that search for jurisdictions with minimal regulatory barriers “will not make it in the future.”
“She suggested that they should move to a place that provides legal clarity for the company,” she said.
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