Australian crypto exchanges largely praise the Australian Treasury's proposal to regulate them under existing financial services licensing measures. The Treasury outlined a new suite of proposed regulations, including existing financial services rules and new guidelines for all Australian firms dealing in digital assets. While some worry about fitting the crypto industry into traditional finance regulations, others see it as a positive step for growth, innovation, regulatory certainty, and consumer protection.
Australian Crypto Exchanges Welcome Treasury's Proposal to Regulate Under Financial Services Licensing
Australian crypto exchanges largely praise the Australian Treasury's proposal to regulate them under existing financial services licensing measures. The Treasury outlined a new suite of proposed regulations, including existing financial services rules and new guidelines for all Australian firms dealing in digital assets. While some worry about fitting the crypto industry into traditional finance regulations, others see it as a positive step for growth, innovation, regulatory certainty, and consumer protection.
In an October 16 consultation paper, the Australian Treasury introduced plans to regulate cryptocurrency exchanges under pre-existing financial services licensing measures. The proposal aims to provide a framework for industry growth and innovation, ensure regulatory certainty for crypto service providers, and protect consumers and their assets.
Caroline Bowler, CEO of BTC Markets, considers the proposed rules a positive progression for the wider crypto industry in Australia. She views it as a key milestone and emphasizes the importance of keeping pace with international peers in establishing a robust regulatory framework.
Adrian Przelozny, CEO of Independent Reserve, commends the government's recommendations, stating that these changes could drive investment, provide certainty, and increase consumer protection.
Adam Percy, general counsel of Swyftx, supports much of the Treasury's proposals, focusing on ensuring crypto investors can safely access blockchain benefits while allowing room for innovation.
Jonathon Miller, managing director of Kraken Australia, expresses concern about fitting the crypto industry into existing financial services regulation, considering it a TradFi-shaped box. Despite the worries, Miller acknowledges that the consultation paper is a step in the right direction, providing regulatory certainty for crypto companies in Australia.
Liam Hennessy, a partner at Clyde & Co., believes the proposal makes sense for the Australian crypto industry, helping the country catch up with jurisdictions like the European Union in regulating crypto. He notes the complexity of the Australian Financial Services licensing regime, urging local crypto exchanges to prepare their applications.
(TOM MITCHELHILL, COINTELEGRAPH, 2023)