By Michael Scott
The recent disclosure made within the Freedom of Information Laws suggests that Australians will wait longer for crypto regulations. The laws projected to offer regulatory clarity to the crypto operators and safeguard retail customers of digital assets are over a year away.
Uncertainty in Timeline to Enact Crypto Regulations
While the Australian government is noncommittal on the timeline to implement the crypto legislation, it revealed plans to release the crypto consultation paper by June 2023.
The delay is unsurprising, given the Treasury’s disclosure in August 2022 that crypto stakeholders could become disappointed owing to the delayed implementation of the licensing regime. The admission conveyed three months following Anthony Albanese’s triumph over Scott Morrison to the country’s prime minister position.
Collapse of Crypto Firms in 2022 Justifying the Delayed Legislation
Speculators are attributing the delay as worthwhile, given the nature of crypto companies’ collapse amid the prolonged crypto winter. The occurrences have an active input in shaping the crypto regulation.
A recent report by the Australian Financial Review (AFR) demonstrated that Treasury schedules are set to accommodate detailed consultation with the crypto industry till next year. Similarly, the report revealed that the Treasury would take a longer period stretching into 2024 to design the crypto legislation.
The AFR showed that the final submissions from the ongoing consultation would occur toward the end of 2023. Compliance with such a date would imply that crypto legislation would come to reality in Mid-2024 and perhaps extend to 2025.
Treasury Commitment to Comprehensive Legislation
The projection by the crypto observers aligns with the previous confession by Treasurer Jim Chalmers in August 2022. He expressed the struggles experienced by the Australian regulation to keep the accelerated pace witnessed within the crypto asset industry. Chalmers proposed the need for regulators to consider deploying token mapping.
The delay aligns with the Albanese-led government embracing a serious execution process to formulate comprehensive regulation fitting the crypto ecosystem. Also, the government is reevaluating the risks necessitating priority amidst the sudden collapse of leading crypto operators in 2022.
The Treasury recognizes the need to enforce action against rogue crypto operators. However, it mandates the treasure to pursue opportunities to comprehend emerging innovations and inherent risks. Meanwhile, the Treasury confirmed the establishment of a specialized crypto policy department.