Australia’s crypto laws are at risk of being left behind by emerging markets such as Bermuda and Nigeria, according to Loretta Joseph, the chair of the Australian Digital Financial Standards Advisory Council (ADFSAC). Joseph emphasized the need for Australia to accelerate the development of crypto regulations to keep up with other countries.
While Australia’s Treasury conducted consultations earlier this year for its “token mapping” exercise to classify various crypto assets,
Joseph argued that the pace of regulatory development in the country remains too slow. She expressed her disappointment in seeing countries like Bermuda, Mauritius, and Nigeria moving faster in developing regulations, recognizing the positive impact of decentralized technology on global welfare.
To address the situation, Joseph stressed the importance of updating or adopting new laws to cover the evolving crypto ecosystem and foster innovation.
She cited her involvement in writing crypto policies and legislation for Bermuda as an example of successful collaboration between industry, academia, policymakers, and the government.
Establishing think tanks like ADFSAC, which brings stakeholders together, is crucial to facilitating dialogue and creating effective regulations.
In addition to regulatory frameworks, Joseph emphasized the significance of education in the crypto space. The ADFSAC aims to provide education on cryptocurrencies by demonstrating their ease of use and addressing concerns directly with individuals.
Regarding policy direction, Joseph recommended that Australia align with global standard setters such as the International Organization of Securities Commissions, the Financial Action Task Force, and the Financial Stability Board.
She anticipated that the governmental G7 and G20 forums would soon enforce crypto rules, making it essential for companies to operate in jurisdictions with legal clarity to ensure their survival.
Joseph called for Australia to speed up the development of crypto regulations, highlighting the risk of being left behind by other countries.
By updating or adopting new laws, collaborating with stakeholders, and aligning with global standards, Australia can establish a conducive environment for crypto innovation while providing legal clarity to businesses in the sector.
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