Australia Rejects Crypto Bill, Throws Future of Industry into Uncertainty
In a blow to the crypto industry, Australian regulators have rejected “The Digital Assets (Market Regulation) Bill 2023” and instead recommended further consultation with the industry to develop appropriate digital assets regulation in the country. The decision has raised concerns about Australia’s position in the global crypto market and its ability to attract fintech firms.
Key Points:
- The Senate Economics Legislation Committee has rejected the proposed crypto bill and called for continued consultation with the industry for better regulation.
- The committee criticized the lack of detail and alignment with international norms in the bill, raising concerns about regulatory arbitrage and adverse outcomes for the industry.
- Australia’s regulatory approach needs to align with global norms to avoid disadvantages in the global crypto market.
- Indian Prime Minister Narendra Modi emphasized the need for international cooperation on crypto regulations at the G20 summit, advocating for a unified global framework.
- The promised consultation paper on a licensing and custody framework for crypto asset service providers in Australia has yet to be released.
Hot Take: The rejection of the crypto bill by Australian regulators is a setback for the country’s crypto industry. Without clear and comprehensive regulation, Australia may struggle to attract international fintech firms and become a global hub for crypto innovation. The delay in releasing the consultation paper on licensing and custody further adds to the uncertainty surrounding the industry’s future in the country.
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