After many governments around the world began looking for a well-regulated and stable cryptocurrency market, Australia is likely to postpone its crypto legislation due to a delayed response from stakeholders. The Labor government launched an open platform to discuss crypto-related frameworks, which started last year and ended on March 3rd.
In order to enhance the crypto-related experience in 2022, Jim Chalmers, the Treasury department head, pledged that the government would uphold consumer rights. He also added that they will improve the way Australia’s legal framework governs the digital asset market.
With the rise of cryptocurrencies being used as a medium for transferring funds to terrorist groups and radicals worldwide, it is inevitable to launch crypto legislation.
According to some experts, delayed regulations could impact the country’s proactiveness in managing the crypto industry.
The proposed legislation will focus on the regulation of asset exchanges, digital wallets, and initial coin offerings (ICOs). The Australian government is also considering the implementation of KYC norms and anti-money laundering (AML) requirements for the crypto industry. Treasurer is unsatisfied with the slow response of stakeholders in providing feedback for the proposed legislation.
We all are aware that the world is very dynamic and difficult to understand both new solutions and shortcomings arising every month. According to the department, if the legislation gets delayed, the documents could become irrelevant due to the volatility of the market.
Documents that were recently submitted by stakeholders are not final. The final document will be submitted by the end of this year. Experts are concerned because the longer the delay, the greater the risk of destabilization in the crypto industry.
If countries like Australia, where the digital literacy rate is commendable, delay the process of crypto regulation, it is a matter of concern for all. Last year, in November, the crypto dedicated unit prepared draft policies related to licensing and registration. Unfortunately, no concrete decision has been made yet, so we have to wait at least a year to see the outcome.