Mar 06, 2023
Australian Crypto Legislation Delayed to 2024+
Australian government documents obtained by The Australian Financial Review through Freedom of Information laws have revealed that the government’s plans for crypto legislation could be pushed back to 2024 or beyond.
The documents show that the government aims to release consultation papers in the second quarter of 2023 and will hold stakeholder roundtables on crypto licensing and custody in the third quarter. The industry has been waiting to see the next steps of the Australian Labor government’s token mapping exercise, which was announced three months after it came into power last year, with submissions closing on March 3.
The Treasury has acknowledged that they expect some frustration from crypto businesses and consumer groups over the long timetable. They believe that in the wake of FTX’s collapse, the demand for cryptocurrencies has “weakened significantly”, which could give them more time to hash out regulations.
The government has also revealed that it has created a dedicated “crypto policy unit” within the Treasury department. In a meeting with treasury last November, the crypto policy unit reportedly flagged possible requirements for crypto licenses, including “fit and proper person” tests, capital requirements and obligations to report bad actors and scams in the industry. The unit also discussed beefing up consumer protections.
In September of last year, a survey from Australian crypto exchange Swyftx revealed that approximately one million Australians planned to purchase cryptocurrency for the first time over the next 12 months, bringing total crypto ownership in the country to over five million.
The Australian government is taking a cautious approach to the crypto industry, but it is also taking steps to ensure that the industry is properly regulated and consumer protections are in place. This includes the creation of a crypto policy unit, which is dedicated to exploring the potential of crypto, as well as the token mapping exercise, which is intended to provide clarity on how any new licensing framework would operate in practice.
The government is also looking into NFTs and is considering ways to promote and market them, as well as ways to make them more accessible to the general public. They are exploring the potential of Twitter NFT marketing, as well as the possibility of working with an NFT marketing agency or web3 agency to help promote NFTs.
The government is also looking into ways to make it easier for people to buy and sell NFTs, as well as ways to make sure that the industry is properly regulated and consumer protections are in place.
The documents show that the government is taking a thoughtful and thorough approach to the crypto industry, and that it is willing to take its time to get a full picture of the industry before making any decisions. This could mean that the industry will have to wait until 2024 or beyond to see any real progress in terms of legislation, but it is clear that the government is committed to creating a safe and secure environment for crypto businesses and consumers.
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