Australia’s crypto laws risk outpacing emerging markets: think tank

The Australian government needs to speed up its pace in developing crypto regulation or risk falling behind developing markets, according to the president of a new crypto think tank.

Loretta Joseph, chair of the Australian Digital Financial Standards Advisory Council (ADFAC) – the newly launched policy institute under the ADC Forum – warned Cointelegraph that the country risks falling behind others when it comes to developing regulations.

Earlier this year, Australia’s Treasury consulted for its “token mapping” exercise to help classify different crypto assets. A consultation paper on a possible licensing framework is expected in mid-2023, while roundtables on crypto licenses are expected in the third quarter. There is also a private member’s bill to accelerate crypto regulation.

Consultation open! Today we released the Token Mapping Consultation Paper. This consultation is part of a multi-phased reform agenda to develop an appropriate regulatory setting for #crypto Area. Read the paper and submit views @ @ASIC_connect @austrack pic.twitter.com/OGHuZEGvDp

– Australian Treasury (@Treasury_AU) February 2, 2023

However, Joseph cautioned that the pace of regulatory development in the country is still very slow.

“When I go and work in countries like Bermuda, Mauritius and Nigeria, I move faster than in my own country, which really bothers me,” Joseph said, noting the impact of decentralized technology. Said, “Improving people’s lives globally.”

Bermuda has indicated its support of a regulated crypto industry while Mauritius and Nigeria have been involved in regulation or policy making for their local industries in recent years.

“We are still trying to figure out how to do a token mapping exercise or write legislation around bitcoin or ethereum. We need to move fast.”

Most of the crypto ecosystem in Australia cannot be covered using existing legislation, Youssef said and the country needs to “think” about updating or adopting new laws to “grow and foster innovation”. .

Most Crypto-Friendly Jurisdictions in 2023

1. El Salvador
2. Hong Kong
3. Singapore
4. Portugal
5. Estonia
6. Switzerland
7. United Arab Emirates
8. Malta
9. Luxembourg
10. Bermuda

However, most countries are still in the process of developing laws to regulate the industry. #iweb3 pic.twitter.com/Ey3ZSj0zFy

— Ram (@rrmadityapu) June 18, 2023

Joseph said he has been involved in writing crypto policy and legislation since 2017, helping Bermuda write its laws on digital currency businesses that were passed in 2018.

He saw the need to set up ADFSAC to bring industry, academia, policy makers and government together and said he “hasn’t been able to write a piece of legislation without everyone’s input at the table.”

“It is the think tanks which are very important to discuss the dialogue,” he said.

“Everyone has to be at the table at the same time, because if we’re not, we don’t get this right.”

Education on crypto will also be an important part of the new institute. “Give me a phone. I’ll let you download a wallet. Let’s see how easy it is to use and then we’ll discuss why you don’t like it,” Joseph said.

Connected: New EU Crypto Law: How MiCA Could Make Europe a Digital Asset Hub

As to what policy direction Australia should take, Joseph feels it should align with “global standard setters”, international financial regulators such as the International Organization of Securities Commissions (IOSCO), the Financial Action Task Force (FATF) and the Financial Stability Board. (FSB).

Governments G7 and G20 form “very soon” Joseph believes and companies that are looking for jurisdictions with fewer regulatory barriers “will not survive in the future.”

“You want to move and set up in a jurisdiction that gives you legal clarity as a company,” she said.

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