• Australia’s Treasury consulted on its “token mapping” exercise to classify crypto assets and a paper consulting on possible licensing framework is expected in mid-2023.
• Loretta Joseph, chair of the Australian Digital Financial Standards Advisory Council (ADFSAC) warned that the country risks falling behind others when it comes to developing regulations.
• Australia needs to update or adopt new laws in order to “grow and foster innovation.”
Australia’s Crypto Laws Risk Being Outpaced by Emerging Markets: Think Tank
Bermuda and Nigeria Moving Faster than Australia
Australia’s Treasury has consulted on its „token mapping“ exercise to help classify different crypto assets and a paper consulting on possible licensing framework is expected in mid-2023. However, Loretta Joseph, Chair of the Australian Digital Financial Standards Advisory Council (ADFSAC), warns that the country risks falling behind others when it comes to developing regulations. Bermuda and Nigeria have signaled their support for regulated crypto industry or policymaking for their local industries which are moving faster than Australia.
Fostering Innovation with New Regulations
Joseph noted the impact decentralized technology has on „bettering people’s lives globally“ and said that much of the crypto ecosystem in Australia can’t be covered using existing legislation. Thus, the country needs to “have a think about” either updating or adopting new laws in order to “grow and foster innovation.”
The Most Crypto-Friendly Jurisdictions
El Salvador, Hong Kong, Singapore, Portugal, Estonia, Switzerland are some of the most crypto-friendly jurisdictions as per 2023 survey results which shows how far ahead these countries have moved compared to Australia in terms of regulating cryptocurrency markets.
Conclusion
It is clear that Australia needs quicken its pace in developing crypto regulation or risk falling behind emerging markets when it comes to fostering innovation with new regulations specific cryptocurrency markets.