Labor promises crypto regulation, says it will tackle debanking
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The news: Treasury on Thursday night released an outline for cryptocurrency regulation, the strongest commitment yet made by the Albanese Government to establish a framework for the industry.
In the Statement of Developing an Innovative Australian Digital Asset Industry, the government said it hoped for the local industry to flourish and to discourage the debanking of people within the sector.
The context: The statement listed four priorities: establishing a framework for crypto exchanges, and doing the same for stablecoins, reviewing a potential environment where financial services could be trialled without needing an ASIC licence, and creating initiatives that "safely unlock the potential benefits of digital asset technology".
Labor's regulations on exchanges, or "digital asset platforms" (DAPs), will focus on consumer protections over new rules for people and companies that create cryptocurrencies and digital assets.
The statement also noted that the crypto industry is "a key sector" affected by debanking, and that the regulatory certainty provided by the proposed rules would calm banks that err on the side of caution when dealing with unregulated financial services.
It comes weeks after the Coalition promised it would prioritise crypto regulation, which the industry has long said is needed to maximise institutional adoption, if it wins the upcoming federal election.
“If a Coalition government is given the opportunity to govern and we move quickly we can make sure we have an industry here strengthened by clear guidelines so that they’re not second guessed and having to worry about ASIC," Luke Howarth, the opposition's financial services sppokesman, told Capital Brief.
What they said: "The Albanese Government is developing a fit for purpose digital asset regime to help build a more dynamic and competitive economy," said Treasurer Jim Chalmers, Assistant Treasurer Stephen Jones and special envoy for cybersecurity and digital resistance Andrew Charlton in a joint statement.
"We know that digital assets and blockchain represent big opportunities for our economy, financial sector, payments industry and capital markets."
"We want to seize these opportunities and encourage innovation at the same time as making sure Australians can use and invest in digital assets safely and securely with appropriate regulation. "
The source: Treasury
