By Brenda Collins
A recent evaluation by a financial think tank revealed that the Australian legislature sector is at risk of being outpaced by the rapidly evolving crypto technology. Hence, urges Australian policymakers to step up their games and create modern crypto regulations that suit the advancing blockchain tech.
According to Loretta Joseph, the chairman at ADFSAC, Australia is trailing behind other nations like Bermuda and Nigeria regarding crypto regulations. ADFSAC, the Australian Digital Financial Standards Advisory Council, is a new think factory launched under the ADC forum.
Furthermore, Joseph suggested that the government needs to come up with its crypto regulatory framework soon to avoid being outrun by the rapidly developing global crypto market.
Meanwhile, earlier this year, the Treasury Department of Australia tweeted its mapped-out plans for consultations, development, and implementation of a new crypto regulatory framework that would supposedly help classify and control the conduct of crypto assets in the country.
According to the announcement which surfaced in February, the potential licensing rules consultations were slated for mid-2023. While meetings on crypto licensing would come up by the Q3 this year. In addition, the regulators reportedly drafted a private bill to expedite digital assets regulation.
However, the ADFSAC chairman thinks the country’s crypto legislature schedule is too slow. She added that he witnessed faster-paced regulatory development in other countries like Mauritius, Nigeria, and Bermuda which she has been to recently.
Joseph Urges Australia To Speed Up Her Regulatory Process
Joseph added it upsets her to see that the Australian government is not speeding up the regulatory process which would help them get the better out of the rapidly growing blockchain technology to enhance its citizens.
In addition, the chair pointed out that in recent years, policymakers in Nigeria and Mauritius have been coming up with rules and regulations to guide crypto operations in their territory while Bermuda recently announced support for crypto-related startups.
Furthermore, Joseph highlighted that the crypto industry has developed so much that existing financial laws in Australia cannot fit or effectively regulate them. Hence, the government needs to urgently update the rules or perhaps adopt suitable crypto rules from neighboring nations to benefit from the advanced technology.
According to the survey by ADFSAC, El Salvador, Hongkong, Singapore, Portugal, and Estonia are the top five countries with crypto-friendly business environments globally. However, some of them are yet to officially release their crypto regulatory framework.
In addition, Joseph revealed that she has been helping countries to write their crypto regulatory framework since 2017. She added that she wrote the digital assets regulatory documents for crypto startups which the Bermuda government implemented in 2018.
All Entities Must Unite To Form A Viable Crypto Regulatory Framework
She also suggested that in writing crypto legislation, she needs the cooperation and input of industries, policymakers, academia, and government. Hence, ADFSAC needs to unite these entities and successfully dialogue with them.
Every entity needs to be present at the discussion to form a consensus and churn out a set of legislation that everyone agrees with, said Joseph. The chair also named education as a crucial part of the newly evolving crypto industry.
She gives instances like getting a mobile device and downloading a crypto wallet on it. Then, the roundtable would discuss the features, benefits, risks, and possible solutions to improve the wallet.
Additionally, Loretta Joseph suggested that Australian policymakers should emulate the global standard setters for their regulatory approach. She also named some of these global financial setters in which Australia could follow in their footsteps.
They included the Financial Stability Board, the Financial Action Task Force, and the International Organization of Securities Commissions. Furthermore, Joseph opined that it is possible for the government of G20 and G7 could soon start implementing crypto rules across their member nations.
She added that this development would make it difficult for crypto startups looking for regions with fair regulations to survive in the future. The chair said countries that give legal clarity to crypto companies are ideal regions for crypto startups to thrive and develop their businesses profitably without clashing with regulators.
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