Recommendations outlined by Australian Lawmakers supporting Crypto Regulations
The Australian Senate committee proposed a comprehensive plan to lead the way globally with regulations aimed at encouraging the cryptocurrency industry.
The Senate Committee on Australia as a Technology and Financial Centre (ATFC), chaired by Liberal Senator Andrew Bragg, presented its final 156-page report outlining their recommendations regarding a framework for regulating digital assets in Australia.
Up until now, many major Australian banks refused to deal with crypto-related companies. Traders of Australia's digital assets have been denied banking services. However, this new report indicates that banking and regulatory officials may be changing their regulations.
According to the report, Australia has become one of the top cryptocurrency users per capita, with more than 25% of Australians investing in cryptocurrencies. But, Australia lacks advantageous regulatory frameworks when compared to Singapore and the United Kingdom, the report says.
A new mechanism for market licenses for crypto exchanges is one of the suggested changes highlighted in the report. Furthermore, it advocates for a more straightforward framework for the custody of assets. Liberal Senator Andrew Bragg, chairman of the select committee, believes that his future regulatory proposals will be well received.
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“This provides a very clear agenda for Australian leadership on digital assets, in terms of protecting consumers and boosting investment,” said Andrew Bragg.
He adds, “The market is asking for regulation, and we are responding while trying to avoid trampling on innovation.”
Other important recommendations in the report include new licensing regimes for crypto exchanges and custody providers, and token mapping exercises to properly classify digital assets. The report also emphasizes the importance of ensuring that current anti-money laundering and counter-terrorist financing regulations do not stifle innovation in the field of crypto space.
Blockchain Australia, top exchanges, and firms like R3 and Ripple were among the industry leaders who spoke to the committee. The industry players recommended a regulatory framework that uses a risk-based approach to identify digital asset services that pose a high enough risk to be regulated.
CBW - External Analyst