Think tank warns Australia’s crypto laws may fall behind emerging markets.
The chair of a new crypto think tank has warned that the Australian government needs to speed up the development of crypto regulation or risk falling behind developing markets. Loretta Joseph, chair of the Australian Digital Financial Standards Advisory Council (ADFSAC), has stated that the country needs to update or adopt new laws in order to foster innovation, as much of the crypto ecosystem in Australia can’t be covered using existing legislation. Earlier this year, Australia’s Treasury ran consultations for its “token mapping” exercise to help classify different crypto assets. However, Joseph believes that the pace of regulatory development in the country is still too slow, and that Australia risks falling behind other countries such as Mauritius, Bermuda and Nigeria.
The ADFSA will bring together the industry, academia, policymakers and government to set up a dialogue about crypto regulation. Joseph believes that think tanks are important to get the dialogue discussed, and that education on crypto will be a key part of the new institute. She thinks that Australia should align with “the global standard setters” naming international financial regulators such as the International Organization of Securities Commissions (IOSCO), the Financial Action Task Force (FATF) and the Financial Stability Board (FSB).
As for what policy direction Australia should take, Joseph thinks that the governmental G7 and G20 forms will start to enforce crypto rules “very soon” and those companies looking to jurisdictions with low regulatory hurdles “won’t survive in the future.”