Monetary Providers Minister Stephen Jones says there are good arguments for treating sure cryptocurrencies as monetary merchandise beneath the legislation, as the federal government goals to introduce laws to manage the sector later this 12 months.
Crypto regulation can be a key concern within the fintech sector in 2023, and Jones says that as a primary step, the federal government would quickly launch a “token mapping” train that might present which crypto belongings it deliberate to manage.
Assistant Treasurer Stephen Jones.Credit score:Steven Siewert
It follows a tumultuous 12 months on crypto markets, with confidence rattled after valuations tumbled and the Bahamas-based crypto change FTX, as soon as valued at US$32 billion, went bankrupt in November.
Jones stated the FTX collapse “puts beyond doubt” the necessity for crypto regulation, and the federal government’s focus was on crypto belongings that act like monetary merchandise however are unregulated.
“I don’t want to pre-judge the outcomes of the consultation process we are about to embark on. But I start from the position that if it looks like a duck, walks like a duck and sounds like a duck then it should be treated like one,” Jones stated in an interview with this masthead.
“I’m not that attracted to setting up a completely separate regulatory regime for something that is, for all intents and purposes, a financial product.” Presently, many crypto merchandise should not thought of to be monetary merchandise, which implies a lot of the sector is unregulated.
One concern up for debate is whether or not the federal government ought to design laws that might classify all crypto belongings as monetary merchandise – a place supported by the Australian Securities and Investments Fee (ASIC) and the Commonwealth Financial institution.
Crypto sector foyer group Blockchain Australia, however, instructed the federal Treasury final 12 months that it was strongly towards this method. It argued that if all crypto belongings had been handled as monetary merchandise, it could hurt funding within the sector and result in the lack of crypto-related jobs.
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