The lack of clear cryptocurrency regulation has become a global concern, with many governments failing to establish frameworks that foster innovation while protecting consumers.
Liberal Senator Andrew Bragg recently highlighted this issue at The Australian Crypto Convention, criticizing the Australian government for its slow progress in regulating the cryptocurrency market.
Senator Bragg expressed frustration with what he described as the government’s lackadaisical approach, stating that its delay has left consumers vulnerable to the risks of an unregulated market.
“First, it has left consumers exposed to the risks of an unregulated market. Second, it has driven investment offshore,” he said.
“Our robust financial regulatory framework, paired with a comprehensive approach to crypto regulation, had the potential to position us as a regional hub for digital assets.”
“However, as neighboring developed economies like Hong Kong, Singapore, and Japan advance their crypto regulations, our chance to emerge as a leading crypto hub is rapidly diminishing.”
A Senate Select Committee report outlined 12 recommendations for cryptocurrency regulation in Australia, including a market licensing regime, auditing standards, and responsible person tests.
Senator Bragg noted that the Morrison government had established a timeline for implementing crypto regulations, including a taxation framework.
“At the time, I was optimistic that by the end of 2022, Australia would have a legislative framework in place,” Mr. Bragg stated during the conference on Saturday.
He accused the Labor government of leaving Australia stuck in the “regulatory slow lane” and dismissed their promises of action as “nothing more than cheap lip service.”
“Labor has placed us in the regulatory slow lane because, frankly, they don’t want crypto regulation,” Mr. Bragg said.
“Not even the collapse of FTX in November 2022 was enough to spur Labor into action.”
