Crypto Laws In Australia At Risk Of Falling Behind Developing Markets

The Australian Digital Financial Standards Advisory Council (ADFSAC), a newly released policy institute under the ADC Forum, has raised concerns about the pace of regulatory development in the country.

ADFSAC believes that Australia’s crypto laws face the risk of being left behind by rapidly emerging markets.

Australia’s Crypto Laws Risk Falling Behind

The chair of ADFSAC, Loretta Joseph, warned that Australia could fall behind other nations in developing effective regulations for the crypto industry.

Joseph highlighted the faster progress countries like Bermuda, Mauritius, and Nigeria made in regulating their local crypto industries. As such, she expressed disappointment in Australia’s comparatively slow approach.

Notably, Bermuda has shown its support for a regulated crypto industry, signaling its intention to create a favorable environment for crypto businesses.

On the other hand, Mauritius and Nigeria have actively engaged in regulating and policymaking for their local crypto industries in recent years. Meanwhile, Australia’s Treasury conducted consultations for a “token mapping” exercise, aiming to classify various digital currencies.

A paper seeking feedback on a potential licensing framework is anticipated to be released in mid-2023. Also, roundtable discussions on digital asset licensing will occur in the third quarter. 

Additionally, a private bill has been proposed to expedite crypto regulation. However, Joseph believes that the overall pace of regulatory development in Australia is inadequate.

Joseph, who has been active in crafting crypto policy and legislation since 2017, emphasized the necessity of updating or adopting new laws to accommodate the evolving crypto ecosystem in Australia.

She cited the need for a comprehensive approach that fosters innovation and growth while addressing the gaps left by existing legislation.

ADFSAC emerged as a platform to bring industry experts, academia, policymakers, and government officials together to address these concerns.

The think tank aims to facilitate dialogue and collaboration among stakeholders to ensure consideration of all perspectives in the policy-making process. Education on cryptocurrencies and their potential benefits will also be a significant focus of ADFSAC.

Regarding the future policy direction for Australia, Joseph recommended aligning with global standard-setting bodies, including the International Organization of Securities Commissions, the Financial Action Task Force, and the Financial Stabil

31% Of Australia’s Citizens Possess Digital Assets

In a recent survey conducted by the Australian Securities Exchange (ASX), it has been found that a significant number of young Australians are actively involved in the world of cryptocurrencies, despite considering themselves “risk averse.”

The study highlighted the growing interest in digital currencies among Australians aged 18 to 24, with 31% of them holding investments in crypto assets.

Interestingly, the ASX survey pointed out that while this younger demographic described themselves as more cautious and inclined towards “stable returns,” a considerable portion still chose to invest in cryptocurrencies.

The survey also shed light on the investment preferences of Australians aged 25 to 49, a group referred to as “next-generation investors” by the study.

Of this demographic, 46% identified themselves as seeking stable returns, aligning with the risk-averse perception. This study report showcases the need to fasten regulatory provisions to guide the citizens, interactions with crypto.