Australian crypto exchanges have expressed support for the Treasury’s proposal to regulate them under the current financial services licensing regime, but some worry that this could limit the innovation that the crypto sector is known for.
Australian crypto exchanges have publicly supported the Australian Treasury’s plan to bring crypto exchanges under existing financial services licensing laws.
The Australian Treasury has outlined a suite of new regulations for cryptocurrency exchanges in a consultation paper published on October 16. These regulations involve regulating exchanges under existing financial services rules and introducing additional guidelines for firms dealing in digital assets.
At the Australian Financial Reviews Crypto Summit on Oct. 16, the Assistant Treasurer of Australia, Stephen Jones, explained that the new regime is focusing on three primary areas: promoting growth and innovation in the crypto sector, providing regulatory clarity for service providers, and protecting consumers and their assets.
Caroline Bowler, CEO of BTC Markets, has informed Cointelegraph that the new rules represent a significant advancement in Australia’s regulatory framework for crypto and a major milestone for the industry.
“It’s a great next step for the Australian economy. Digital assets are so clearly the future of financial services. The country must keepThe country must keep pace with our international peers with a robust regulatory framework,” said Bowler.
Adrian Przelozny, CEO of Independent Reserve, has expressed support for the federal government’s recommendations for stronger crypto regulation, explaining that these proposals could help restore confidence in the sector.
“We firmly believe these changes will drive investment, provide certainty to the sector, and ultimately, increase consumer protection.”
Adam Percy, general counsel of Swyftx, has concurred with the Treasury’s proposal but emphasized the need to ensure that crypto investors can access the benefits of blockchain technology while still protecting their investments and providing an environment that allows innovation in the sector.
Jonathon Miller, the managing director of Kraken Australia, has expressed his concern to Cointelegraph, emphasizing that the proposed regulations could potentially force the cryptocurrency sector into a TradFi-shaped box.
“Australia is now in the unfortunate situation where our regulation has taken a very long time, so we’re taking the approach of shoehorning crypto into existing financial services regulation,” said Miller.
While Jonathon Miller has had concerns about the potential impact of the new regulations, he has recognized that the consultation paper represents progress toward regulatory clarity for crypto companies in Australia.
“We’re behind our global peers when it comes to implementing a crypto framework, so I appreciate the need to have something in place locally to provide certainty to platforms like ours,” he added.
However, Liam Hennessy, a partner at Clyde & Co, an international law firm actively engaged in the consultation, has voiced his view that the latest suggestion put forth by the Treasury appears to align with the interests of the Australian cryptocurrency sector.
According to Liam Hennessy, the new regulations will help bring Australia’s crypto industry closer to other jurisdictions that have made more progress in regulating the sector, such as the European Union.
Liam Hennessy has noted that local crypto exchanges and digital asset services providers need to start the process of applying for an Australian Financial Services license as soon as possible due to the complexity of the process.
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