RippleThe global policy chief has urged the Treasury to amend a section of its Digital Assets Bill, warning it could unintentionally bankrupt emerging crypto companies.
The new framework does not give crypto businesses enough time to apply for and obtain the new Australian Financial Services Licenses (AFSL), which Ripple has applied for. Rahul Advani says it can take more than 18 months to secure.
“There needs to be a clear and actionable roadmap and a longer transition period to give companies time to obtain licenses, put in place compliance processes and raise capital,” Advani said. “Without this, many businesses could be forced to close their doors abruptly, disrupting the market.”
Last month, the Treasury released an exposure draft of the long-awaited legislation, which names “digital asset platforms” and “tokenized custody platforms” as financial services to be regulated by ASIC.
