The Australian crypto industry has called on the newly reelected Labor government to urgently make digital asset legislation a top priority to ensure Australia doesn\u2019t fall further behind global markets.<\/p>\n
The incumbent Australian Labor Party was returned in a landslide on May 3, picking up 54.9% of the two-party-preferred vote, against the Liberal and National Parties on 45.1%. Both parties went to the election promising crypto law reform, but only the opposition pledged to deliver draft legislation within 100 days<\/a>. <\/p>\n Joy Lam, Binance\u2019s head of global regulatory and APAC legal, said the exchange has been consulting with Treasury officials since late 2023 about its proposed legislation, and it was now time for action.<\/p>\n \u201cTiming is really quite critical now because obviously it’s something that has been discussed and kicked around for quite a few years,\u201d she told Cointelegraph. <\/p>\n Coinbase managing director for APAC John O\u2019Loghlen said the reelected Albanese Government has the \u201copportunity and the responsibility to move quickly on this issue\u201d and called for a Crypto-Asset Taskforce to be established within its first 100 days \u201cwith the aim of bringing forward legislation that protects consumers, promotes innovation, and stops the exodus of talent and capital to other markets.\u201d<\/p>\n Reelected Prime Minister Anthony Albanese. Source: <\/em>Anthony Albanese<\/em><\/a><\/p>\n BTC Markets CEO Caroline Bowler said that <\/strong>\u201cbeyond the political implications, this result sets the stage for meaningful progress in Australia\u2019s approach to digital asset regulation.\u201d<\/p>\n Lam noted that the\u00a0UK released its draft regulations last week<\/a>, stablecoin bills are moving forward in the US, and the EU has already implemented its MiCA legislation.<\/p>\n \u201cSo there’s a very clear shift. Everyone’s moving towards providing the regulatory framework that is needed for the industry to develop in a sustainable way. So time is really of the essence now.\u201d<\/p>\n Treasurer Jim Chalmers\u2019 office told Cointelegraph that exposure draft legislation would be released sometime this year for consultation, and any legislated reforms would be \u201cphased in over time to minimize disruptions to existing businesses.\u201d<\/p>\n Although the Treasury has draft legislation on \u201cregulating digital asset platforms\u201d and \u201cpayments system modernization\u201d scheduled<\/a> for release by the end of June, Lam isn\u2019t confident. “I don’t know whether this quarter specifically is still sort of the timeline,\u201d she said. <\/p>\n Related: <\/strong><\/em>Australian election will bring pro-crypto laws either way<\/strong><\/em><\/a> <\/p>\n While the ALP has been attacked by some over not taking any action in its first term in government, that may actually have resulted in a better outcome than legislation that took its cues from the approach of Joe Biden\u2019s administration, which took a hard line on banks dealing with cryptocurrency and viewed most coins as securities.\u00a0<\/p>\n Industry figures report a noticeable evolution in the government\u2019s approach to crypto between when proposals were first put out for consultation at the end of 2023 and when the Treasury released its much more positive \u201cStatement on Developing an innovative Australian digital asset industry<\/a>\u201d in March this year.<\/p>\n Australia Votes running tally on the Australian election. Source: <\/em>ABC <\/em><\/a><\/p>\n The statement sets out key priorities, such as using the existing Australian Financial Services License (AFSL) regime to underpin the regulation of Digital Asset Platforms and payment stablecoins. It\u2019s focused on the safe custody of client assets by centralized providers and sidesteps issues around decentralized finance platforms<\/a>.\u00a0<\/p>\n Lam welcomed the use of the AFSL regime. \u201cObviously, we don’t need to reinvent the wheel,\u201d she said. \u201cIt\u2019s something that people know and understand. It’s a pretty sensible move, and it\u2019s also going to be much easier for regulators.\u201d<\/p>\n The government will also review the Enhanced Regulatory Sandbox, which aims to provide space for innovative digital asset startups to grow free of red tape. The statement also highlights opportunities with tokenization. <\/p>\n Lam said the change in emphasis showed the government has been listening to the industry.\u00a0<\/p>\n \u201cIt reflects the industry feedback that they would have received in 2023 as a result of the consultation, as well as the changing landscape because obviously it\u2019s been evolving pretty quickly internationally,\u201d Lam said. <\/p>\n \u201cThey do have the benefit now of looking at what has worked and hasn\u2019t worked in other jurisdictions, and really building on those lessons.\u201d<\/p>\n Dea Markovy, policy director at Fireblocks, told Cointelegraph that \u201ca lot of the groundwork and research is done\u201d and it was looking broadly positive.<\/p>\n \u201cOf course, a lot of details are still to come around Australia\u2019s Digital Asset Platforms (DAPs) regime. What is significant here is the willingness of the Government to cut through the complexity and uncertainty on crypto intermediaries licensing.\u201d\u00a0<\/p>\n The securities regulator ASIC released its own crypto regulations proposals (INFO 225<\/a>) in December, and feedback from those consultations will help inform the government’s new legislation.\u00a0<\/p>\n \u201cIn essence, it details how different token issuances and crypto intermediation will fit into Australia\u2019s existing securities legislation, providing for a transition period,” explained Markovy.<\/p>\nDraft crypto legislation within months<\/h2>\n
Tokenization and sandbox<\/h2>\n