t is positive to see that the Federal Government is committed to providing regulatory clarity for crypto assets in Australia and doing so through the existing AFSL regulatory framework. ASIC’s proposed Info Sheet 225 sought crypto exchanges to hold an impractical market operating license.
Currently, only two companies in Australia have a market operating licence and it took years to obtain and millions of dollars to do so. Crypto.com has long been an advocate for building off of the existing AFSL regime rather than forcing firms to obtain a market operating licence, and we are pleased to now see that the Federal Government supports this vision as well.
We understand and welcome that the Federal Government will work with ASIC and stakeholders across the industry to develop draft legislation later this year that prioritises both consumer protection and innovation. It is fundamental that we make strong inroads into developing fit for purpose legislation by year end, as a failure to do so risks Australia losing out on foreign investment and innovation moving to other jurisdictions that offer more clarity in crypto regulation.
In addition to harnessing the AFSL regime, the draft legislation can build off the learnings and successes of jurisdictions already making great progress in crypto regulation – UAE, Singapore and the EU for example, as well as the U.S., which has recently passed its Financial Innovation and Technology for the 21st Century (FIT21) Act, a bipartisan initiative described as a pivotal moment for the digital asset ecosystem.
Last week, more than 70 global crypto leaders descended on Sydney for Policy Week – a nod to the motivation from the industry for clarity and regulatory support. A clear take away from Policy Week was that international leaders are seeking to bring the best and most effective policies to Australia – building off successful frameworks that are tried and tested. This approach will fast-track our path to regulation, by enabling us to incorporate compliance and governance frameworks that work.
By Vakul Talwar, Head of Australia at Crypto.com
