Australia’s Cryptocurrency Legislation May Come In 2024

06 Mar 2023

Mitchell Nixon

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Cryptocurrency Legislation in Australia Faces Delays

Cryptocurrency legislation in Australia could take at least a year to be implemented, according to internal documents obtained from the Australian Treasury Department.

The government appears to be taking a cautious approach, with the process potentially extending beyond 2024. This measured timeline aims to ensure a comprehensive understanding of the industry, with consultation papers anticipated in Q2 2023 and stakeholder roundtables on crypto licensing and custody slated for Q3.

The Australian Financial Review, through freedom of information laws, revealed these findings. Meanwhile, the crypto industry awaits the outcomes of the token mapping exercise initiated by the Australian Labor government, which was announced three months into its tenure last year. Submissions for the exercise concluded on March 3.

The documents indicate that final submissions to the cabinet may not happen until late in the year, prolonging any potential decisions on crypto legislation beyond 2024.

The Treasury Department’s briefing has also acknowledged the likelihood of frustration among crypto businesses and consumer groups due to the lengthy timeline.

“Treasury expects some stakeholders to be disappointed with the perceived delay in implementing a licensing regime,” as per a brief obtained by the Australian Financial Review, which was attributed to Australian Treasurer Jim Chalmers.

“For example, consumer groups seeking immediate protections and businesses seeking regulatory legitimacy.”

Nonetheless, the Treasury Department holds the belief that the demand for cryptocurrencies has substantially weakened after the collapse of FTX, which may provide them with additional time to formulate regulatory frameworks.

“Treasury considers these concerns are somewhat mitigated by the current market conditions resulting in less consumer demand for crypto assets; and the need to complete the token mapping exercise to provide clarity on how any new licensing framework would operate in practice.”

Crypto Policy Unit: Comprehensive Regulations

The government has disclosed the establishment of a specialised “crypto policy unit” within the Treasury department in the documents.

During a meeting with the Treasury department in November, the crypto policy unit purportedly highlighted possible prerequisites for crypto licences, such as conducting “fit and proper person” tests, meeting capital requirements, and fulfilling obligations to report fraudulent activities and scams in the industry. The unit also discussed enhancing consumer safeguards.

According to a survey conducted by Australian crypto exchange Swyftx in September of last year, around one million Australians intended to buy cryptocurrency for the first time in the following year, thereby increasing the total number of crypto holders in the country to over five million.

 

Conclusion:

The delays in cryptocurrency legislation in Australia underscore the importance of being proactive in understanding and engaging with the digital asset market. As the government works towards comprehensive regulations, investors and crypto enthusiasts can still take charge of their financial futures by equipping themselves with the right tools and knowledge.

At Imperial Wealth, we offer resources to navigate the evolving crypto landscape, including our crypto trading course to enhance your trading strategies, ASIC miners for efficient mining, and Bitcoin miner hosting services for streamlined operations.

Don’t wait for regulations to catch up—empower yourself today with the expertise needed to succeed in cryptocurrency investing. Book your free consultation now and stay ahead in the dynamic world of digital finance.