Several emerging markets are outpacing the developed economies to embrace crypto laws in the scramble for digital assets innovation. The move arises from awareness of crypto firms fleeing US regulation by enforcement adopted by regulators.
Loretta Joseph urges the Australian government to hasten the pace of developing crypto regulation to avoid the risk of trailing emerging markets. She observed that Nigeria and Bermuda were setting the pace for Australia, posing a challenge for legislators in the Land Down Under to catch up with speed.
Loretta, who chairs the newly launched Australian Digital Financial Standards Advisory Council (ADFSAC), is rallying the country to pace its crypto legislation process. The executive of the new policy institute that will operate under the ADC Forum warns that the country risks ending in the peripherals of the digital assets ecosystem.
Australia March to Crypto Regulation Portray a Considered Approach
The criticism lodged by Loretta echoes the remarks conveyed by the Treasury while acknowledging the considered regulatory approach Australia is undertaking. The Treasury executives lauded the consultations initiated in early 2023 to facilitate the token mapping process that would ease the classification of various crypto assets.
The Treasury officials projected the release of the crypto mapping paper by mid-2023 to guide the digital assets’ classification and licensing framework. They observed that roundtables on the digital assets licensing would occur during the third quarter alongside private bills that will expedite the crypto regulation. Nonetheless, Loretta perceives the regulatory development pace as slow relative to the milestone realized in the emerging markets.
Loretta expresses the upsets in witnessing other less developed countries, including Mauritius, Bermuda, and Nigeria, making huge strides into crypto regulation. She regrets that the continued delay is disadvantaging her home country Australia considering decentralized technology’s immense potential and contribution to bettering people’s lives.
Loretta observes that Bermuda is advancing to nurture the digital assets ecosystem through government-led support for regulating the crypto industry. The chair of Australia’s think tank acknowledges the recent involvement of Mauritius and Nigeria in policymaking supporting the local industries.
Unity of Direction Required for Australia to Pace its Crypto Regulation
Loretta wonders why Australia is still stuck in evaluating how to execute token mapping exercises or draft legislation around Ethereum and Bitcoin. Speed is necessary for the exercise, considering the inadequacy characterizing the scope of existing legislation to cover Australia’s bulging crypto ecosystem. The country should stride towards updating or embracing new laws that would catalyze crypto growth and innovation.
Loretta revisited her involvement in writing crypto policies and legislation. She recalled her active input starting in 2017 to assist Bermuda in writing laws to govern digital currency businesses, ultimately approved in 2018. Her input in assisting the emerging market inspired her to establish the ADFSAC as a platform to assemble diverse stakeholders from the government, academia, industry, and policymakers.
Although she acknowledges her capability of writing a legislation piece without external input, consultations during round table ADC forums will deliver unity of direction. Loretta added that think tanks are a critical part of initiating the dialogue to guide the formulation of crypto laws. She rallies the constituent stakeholders to embrace the round tables since their absence would create divisions that would slow the crypto legislation process in Australia.
Australia Challenged to Hasten Crypto Regulations in the Wake of G7 and G20 Governmental Forums
Loretta portrayed education and awareness campaigns as a critical tool that the new institute would prioritize. She analogized the case of downloading a wallet using a mobile phone. The illustration demonstrated how easy it would become to impact and share knowledge among Australians. It would constitute a learning platform to discover why specific individuals have reservations about crypto adoption in Australia.
Loretta observed that Australia should lean towards the policy direction supported by global standard setters. She identified the input of international financial regulators, including the Financial Stability Board (FSB), the Financial Action Task Force (FATF), and the International Organization of Securities Commissions (IOSCO).
Loretta challenged Australia to wake up as governmental forums for G7 and G20 will likely enforce crypto rules soon. She believes crypto regulation is inevitable and that crypto firms seeking jurisdictions with low regulatory hurdles would hardly survive. Instead, firms should prioritize expanding in jurisdictions giving the companies legal clarity.
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