Monetary Companies Minister Stephen Jones says there are good arguments for treating sure cryptocurrencies as monetary merchandise below the legislation, as the federal government goals to introduce laws to manage the sector later this 12 months.
Crypto regulation will probably be a key difficulty within the fintech sector in 2023, and Jones says that as a primary step, the federal government would quickly launch a “token mapping” train that may present which crypto property it deliberate to manage.
It follows a tumultuous 12 months on crypto markets, with confidence rattled after valuations tumbled and the Bahamas-based crypto change FTX, as soon as valued at US$32 billion, went bankrupt in November.
Jones mentioned the FTX collapse “places past doubt” the necessity for crypto regulation, and the federal government’s focus was on crypto property that act like monetary merchandise however are unregulated.
“I don’t need to pre-judge the outcomes of the session course of we’re about to embark on. However I begin from the place that if it seems like a duck, walks like a duck and seems like a duck then it needs to be handled like one,” Jones mentioned in an interview with this masthead.
“I’m not that drawn to establishing a very separate regulatory regime for one thing that’s, for all intents and functions, a monetary product.” At the moment, many crypto merchandise are usually not thought-about to be monetary merchandise, which suggests a lot of the sector is unregulated.
One difficulty up for debate is whether or not the federal government ought to design laws that may classify all crypto property as monetary merchandise – a place supported by the Australian Securities and Investments Fee (ASIC) and the Commonwealth Financial institution.
Crypto sector foyer group Blockchain Australia, then again, instructed the federal Treasury final 12 months that it was strongly in opposition to this method. It argued that if all crypto property have been handled as monetary merchandise, it could hurt funding within the sector and result in the lack of crypto-related jobs.