The Australian government needs to quicken its pace in developing crypto regulation or risk falling behind developing markets, according to the chair of a new crypto think tank.
Loretta Joseph, chair of the Australian Digital Financial Standards Advisory Council (ADFSAC) โ the newly launched policy institute under the ADC Forum โ warned Cointelegraph that the country risks falling behind others when it comes to developing regulations.
Earlier this year, Australia’s Treasury ran consultations for its โtoken mappingโ exercise to help classify different crypto assets. A paper consulting on possible licensing framework is expected in mid-2023, while roundtables on crypto licenses are expected to take place in the third quarter.ย There’s also a private bill to expedite crypto regulation.
Consultation open! Today we released the token mapping consultation paper. This consultation is part of a multi step reform agenda to develop an appropriate regulatory setting for the #crypto sector. Read paper & submit views @ https://t.co/4W2msjhP9B @ASIC_Connect @AUSTRAC pic.twitter.com/OGHuZEGvDp
โ Australian Treasury (@Treasury_AU) February 2, 2023
However, Joseph warned that the pace of regulatory development in the country is still too slow.
โWhen I go and I see countries that I work in like Bermuda, Mauritius and Nigeria move faster than my own country, that really upsets me,โ Joseph said noting the impact decentralized technology has on โbettering people’s lives globally.โ
Bermuda has signaled its support of a regulated crypto industry while Mauritius and Nigeria have been involved in regulating or policymaking for their local industries in more recent years.
โWe’re still trying to figure out how to do a token mapping exercise or write legislation around Bitcoin or Ethereum. We need to be up to speed.โ
Much of the crypto ecosystem in Australia canโt be covered using existing legislation, said Joseph and the country needs to โhave a think aboutโ either updating or adopting new laws in order to โgrow and foster innovation.โ
The Most Crypto-Friendly Jurisdictions in 2023
1. El Salvador
2. Hongkong
3. Singapore
4. Portugal
5. Estonia
6. Switzerland
7. UAE
8. Malta
9. Luxemburg
10. BermudaHowever, most countries are still in the process of developing legislation to regulate the industry. #iweb3 pic.twitter.com/Ey3ZSj0zFy
โ ram (@rrmadityapu) June 18, 2023
Joseph said sheโs been involved writing crypto policy and legislation since around 2017, helping Bermuda write its laws on digital currency businesses it passed in 2018.
She saw the need to set up ADFSAC to bring together the industry, academia, policymakers and government adding sheโs โnever been able to write a piece of legislation without the input of everybody at the table.โ
โIt’s think tanks that are very important to get the dialogue discussed,โ she added.
โEverybody needs to be at the table at the same time, because if we’re not, we’re not going to get this right.โ
Education on crypto will also be a key part of the new institute. โGive me a phone. Let me download you a wallet. Let’s see how easy this is to use and then we’ll discuss why you don’t like it,โ Joseph said.
Related: EUโs new crypto law: How MiCA can make Europe a digital asset hub
As for what policy direction Australia should take, Joseph thinks it should align with โthe global standard settersโ naming international financial regulators such as the International Organization of Securities Commissions (IOSCO), the Financial Action Task Force (FATF) and the Financial Stability Board (FSB).
The governmental G7 and G20 forms will start to enforce crypto rules โvery soonโ Joseph beleives and those companies looking to jurisdictions with low regulatory hurdles โwonโt survive in the future.โ
โYou want to go and set up in a jurisdiction that gives you legal clarity as a company,โ she said.
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