Australia may be joining the growing list of countries with favorable crypto policies in no distant time. This conclusion was drawn from the official report of a committee set up by the Australian Senate to investigate, study, and recommend plans for the crypto industry. The Committee called on the Australian government to completely overhaul existing laws and regulations governing the crypto industry in the country.
The Australian Senate had constituted a committee in 2009 to look into the regulation of FinTech companies in Australia and recommend regulations that work. The committee called the committee on “Australia as a Technology and Financial Center is chaired by Senator Andrew Bragg. It quickly developed a focus on the crypto industry and is now popularly called the Bragg Inquiry. The Committee’s work into crypto regulations has come as a surprise for many, given that Australia is not big on regulations.
The Senate Committee presented its findings on October 20 to the Senate. In the report, it recommended a complete overhaul of existing legislation and the creation of new policies to favor the industry. The question however remains; can Australia grow to become a giant in the cryptocurrency industry?
Regulatory issues have become increasingly important due to the rapid development of crypto-based solutions and the explosive growth of tokens. In Australia, nearly 18% of the population own some crypto and most are active investors who regularly explore the market. The Senate Committee’s report took into consideration the numerous calls for a clear future on crypto and regulations in the country. At the presentation of the report, the committee made it known that it had become necessary for the government to take action over an industry that has a market capitalization of $US2.5 trillion (AUD $3.3 trillion). Senator Andrew Bragg said he hoped that the nation could do all that it could to prevent the growing scams perpetrated through crypto.
The committee presented a dozen guidelines and recommendations which it said that the government should follow in implementing policies for the crypto industry.
Among others, it suggested that the government should establish market licenses for crypto exchanges, establish a mapping exercise to determine the different types of digital tokens, establish an incentivized mining scheme to reward miners who use renewable energy, enforce the observation of due diligence by banks before 2022, etc.
What Does This Mean for Crypto?
The Senate report has received widespread applause from most people who voiced opinions about it. There have been calls and concerns over the abuse of cryptocurrencies and the dangers that it poses. The crypto industry has grown into a giant that the government cannot ignore anymore. It is only natural that the government finds a way to regulate the industry in order to bring stability, safety, and a conducive environment. All of which are necessary for growth.
Experts have predicted that the global adoption of digital tokens will increase in the coming years. Countries are getting into a position of advantage so that they can better handle the transfer from fiat to digital tokens.