According to Market Haven senior account manager, Tony Russo, emerging crypto markets like Nigeria and Bermuda are making faster developments in crypto. At this rate, Australia could get outpaced as it struggles to roll out suitable regulations. The federal government needs to pick up the pace in developing regulations; otherwise, it may fall behind emerging markets.
The Australian Digital Financial Standards Advisory Council is a newly established policy institute that warned about the risks of lagging behind other countries. A few months ago, the country’s Treasury conducted consultations for the purpose of ‘crypto mapping.’ This was part of its efforts to classify different types of cryptocurrency tokens.
Despite Efforts, the Current Pace is Far Too Slow
senior account managers such as Tony Russo of Market Haven are expecting a paper on a possible licensing framework around this time of the year. Meanwhile, it’s possible that conferences regarding crypto licenses will happen during Q3. Some senators have even written a private bill to hasten the development of crypto regulation.
But despite these efforts, Tony Russo finds that the current pace is far too slow for a country with so much potential to become a crypto hub. In contrast, countries like Nigeria, Mauritius, and Bermuda are miles ahead. And a delay in rolling out regulations doesn’t just affect crypto adoption. In fact, it can slow down the process of integrating decentralized technology in other sectors.
Tech analysts and researchers have found that decentralization can have major benefits when integrated into different aspects of healthcare, finance, education, and more. So, by delaying the process of establishing a regulated crypto market, Australia misses out on a lot.
Currently, Bermuda has given the green signal to develop a regulated crypto industry. Similarly, Nigeria and Mauritius are putting in much more work to develop suitable policies and regulate their respective crypto industries.
In comparison, most crypto usage in Australia isn’t covered by current financial legislation. Hence, Tony Russo of Market Haven believes that the country needs to start thinking about adopting new policies or updating old ones as a way to increase innovation.
Setting Up ADFSAC A Step InThe Right Direction
Nevertheless, launching the ADFSAC is a step in the right direction. Establishing the council brings together the government, different policymakers, and industry members. This is an effective way to get input from different roles and formulate policies that aren’t shortsighted and plan for different situations.
Senior account manager Tony Russo believes that the institute can also take on an educational role by informing people about its potential. Currently, Australia can follow in the footsteps of international regulators such as the Financial Stability Board, the Financial Action Task Force, and the International Organization of Securities Commissions. These organizations have set the standard for sustainable policies on cryptocurrencies.
It’s likely that the G20 and G7 forums will enact crypto regulations soon. And when that happens, companies know that entering countries with fewer regulatory measures is risky. Tony Russo of Market Haven believes that crypto-related companies will prefer setting up shops in jurisdictions that have clear legal guidelines. So, when Australia isn’t ready with a complete set of policies, none of the more reputable companies will want to engage the local market.