The Australian cryptography industry called for the new Labor government re -elected to make an emergency the legislation on digital assets an absolute priority to ensure that Australia is not late in the global markets.
The outgoing Australian Labor Party was returned to a landslide on May 3, collecting 54.9% of the two parties, against the liberal and national parties of 45.1%. The two parties went to the elections promising a reform of the law of cryptography, but only the opposition undertook to issue a bill within 100 days.
Coinbase Director of Coinbase for Apac John O’loghlen said that on May 5, the Re-elected Albanian government had “the opportunity and the responsibility to quickly move on this issue” and called for Crypo-Asset legislation to establish during its first 100 days “in order to propose legislation that protects consumers, promised innovation and ceases from exodus and capital to other marines”.
Joy Lam, head of Binance of Global Regulatory and Apac Legal, said that the exchange consults the treasury officials since the end of 2023 about his proposed legislation, and it was now time of action.
“The timing is really very critical now, because obviously it is something that has been discussed and launched for several years,” she told Cintelegraph in an interview on May 2.
BTC Markets CEO Caroline Bowler said “Beyond political implications, this result opens the way to significant progress in the approach of Australia to the regulation of digital assets.”
LAM noted that the United Kingdom published its regulation project last week, Stablecoin’s bills are progressing in the United States and that the EU has already implemented its legislation on mica.
“There is therefore a very clear change. Everyone is moving towards the supply of the regulatory framework which is necessary for the industry to develop in a sustainable way. So time is really petrol.”
Write cryptographic legislation in a few months
The treasurer office Jim Chalmers told Cintelegraph that the exposure bill would be published this year for consultation, and that any legislative reform would be “progressive over time to minimize the disturbances of existing companies”.
Although the Treasury has a draft legislation on the “regulation of digital asset platforms” and the “modernization of the payment system” provided for the publication by the end of June, LAM is not confident. “I do not know if this quarter is specifically somehow chronology,” she said.
In relation: The Australian elections will bring pro-Crypto laws in both cases
Although the ALP was attacked by some without having taken any measure during its first mandate in the government, it could in fact lead to a better result than the legislation which took its mark on the approach of the administration of Joe Biden, who took a hard line on the banks dealing with cryptocurrency and considered most of the coins as titles.
Industry figures report a significant development in the government’s approach to crypto between the moment when proposals were published for the first time at the end of 2023 and when the Treasury published its “much more positive declaration on the development of an innovative Australian digital asset industry” in March of this year.
The declaration defines key priorities, such as the use of the existing Australian financial services license plan (AFSL) to underlie the regulations of digital asset platforms and payment stables. It is focused on the security of customers’ assets by centralized suppliers and bypassing problems concerning decentralized financing platforms.
LAM welcomed the use of the AFSL diet. “Obviously, we don’t need to reinvent the wheel,” she said. “This is something that people know and understand. This is a fairly sensible decision, and it will also be much easier for regulators. ”
Tokenization and sandbox
The government will also examine the improved regulatory sandbox, which aims to provide space for innovation startups on digital assets to develop without paperwork. The declaration also highlights opportunities with tokenization.
LAM said that the change of accent has shown that the government had listened to industry.
“This reflects the comments of the industry they would have received in 2023 following the consultation, as well as the changing landscape, because it obviously evolved fairly quickly internationally,” said Lam.
“They now have the advantage of looking at what worked and did not work in other jurisdictions, and really based on these lessons.”
Dea Markovy, director of politicians at Fireblocks, told Cintelelegraph that “a large part of the bases and research was carried out” and that it seemed largely positive.
“Of course, a lot of details are still to come in the Digital Asset Plates (DAP) platforms in Australia. What is important here is the government’s desire to reduce complexity and uncertainty about the licenses of cryptographic intermediaries. ”
The Asic Securities Regulator published its own proposals for Cryptography Rules (Info 225) in December, and the comments of these consultations will help to clarify the new government’s legislation.
“In essence, it details how different chip emissions and cryptographic intermediation will adapt to the legislation in terms of current securities in Australia, providing for a transition period,” said Markovy.
The project of directives suggests that NFT, assets at stake and the same are not financial products – the local equivalent of “security” – while a stable of yield or a gold token are probably.
The Treasury Declaration also underlined the questions with the speaking. LAM said that simple regulation of the industry would greatly contribute to solving the problem.
“What we really want of governments and regulators is this clean license framework, because it greatly helps to mitigate the risk and give banks the comfort they need,” she said. “And then, it will probably need additional advice given to banks.”
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