Australia’s Crypto Industry Urges New Government to Fast-Track Digital Asset Legislation

In Brief:

Australia’s cryptocurrency sector pushes the new Labor government to prioritize digital asset legislation.

Industry leaders like Binance and Coinbase call for regulatory clarity to ensure Australia remains competitive in the global crypto market.

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Crypto Industry Calls for Action on Digital Asset Legislation

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Australia’s cryptocurrency industry is calling for the newly elected Labor government to prioritize digital asset legislation in order to maintain its competitive edge in the rapidly evolving global market. Industry leaders have emphasized that Australia cannot afford to fall further behind as other nations advance with clearer crypto regulations.

Joy Lam, Binance’s head of global regulation and Asia-Pacific legal affairs, highlighted that the exchange has been in discussions with Treasury officials since late 2023 about proposed legislative changes. Lam stressed that now is the time for action to ensure that Australia remains at the forefront of the crypto space.

Coinbase’s Call for a Crypto-Asset Task Force

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John O'Loghlen, managing director of Coinbase Asia-Pacific, echoed these sentiments, calling for the creation of a dedicated crypto-asset task force within the government’s first 100 days. This would help fast-track the necessary reforms and create a clear regulatory framework for the digital asset industry.

Treasury Department’s Draft Consultation

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The Australian Treasury Department has committed to releasing a draft for consultation later this year. However, the government has stated that any legislative reforms will be implemented in phases to minimize disruptions for existing businesses. The bill will focus on regulating digital asset platforms and modernizing the country’s payment systems, with the existing Australian Financial Services License (AFSL) system serving as the regulatory framework.

The Path Forward for Australia's Crypto Industry

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As the cryptocurrency market continues to mature, Australia’s crypto industry is urging the new government to act swiftly to put in place the regulatory framework that will foster growth while ensuring transparency and security. The outcome of these legislative efforts will determine whether Australia can attract more investment, maintain its competitive edge, and position itself as a global leader in the digital asset space.

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