Treasury defers crypto regulation despite industry calls for clarity
Delays to long awaited crypto regulation have sparked concerns Australia is falling behind other countries as major banks such as NAB pull back from activities in the sector.
The federal Treasury department has told local participants in the cryptocurrency industry that long awaited rules governing digital asset platforms will be delayed, amplifying concerns Australia is falling behind the rest of the world in regulating the sector.
Treasury kicked off a process in October to introduce a framework to "address consumer harms in the crypto ecosystem while supporting innovation", with a three month consultation period.
Draft regulation was expected early this year, however in recent weeks Treasury has advised industry participants it will now hold a second period of consultations, pushing out a more certain regulatory environment by up to a year.
Caroline Bowler, chief executive of crypto exchange BTC Markets, told Capital Brief the decision was a disaster and would lead to investment moving offshore and Australia falling further behind in the shift to digital assets.
