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The Australian government has doubled down on its commitment to a strong regulatory framework for cryptocurrencies. The catastrophic collapse of FTX last week.
A spokesperson for Australian Treasury Secretary Jim Chalmers said the Treasury Department is currently planning regulations to improve investor protection next year. according to In a November 16 report from the AFR.
Making the announcement in light of last week’s decline in FTX, a spokesperson said that they are closely monitoring the impact of the FTX collapse, adding, “Including further volatility in cryptocurrency markets and spillovers to broader financial markets. ‘ and added:
These developments highlight the lack of transparency and consumer protection in the cryptocurrency market, which is why governments are taking action to improve the regulatory framework while fostering innovation.
Requests for expedited regulation look like this: 30,000 Australians and 132 businesses killed To The Fallen Empire of Sam Bankman Freed.
Piper Alderman attorney Michael Bachina, a digital asset specialist, told Cointelegraph that regulation is the only way to re-establish much-needed trust in trading platforms.
Regulatory certainty is key to rebuilding trust associated with centralized exchanges, and while the law cannot eliminate bad behavior, it does create strong norms and standards that make it easier to spot. can be set.”
Meanwhile, Danny Talwar, head of tax at crypto tax platform Koinly, added that a strong regulatory regime could fill the void for retail investors to be exploited.
Influenced by FTX, we are working to eliminate uncertainty and remaining gray areas and provide clarity around digital assets, especially for retail consumers, in the crypto world, both nationally and globally. It highlights the need for regulation.
“[But] The challenge is to ensure that regulation effectively protects consumers without stifling industry growth, he added.
On what regulation might entail, Mr Thalwar said Australian trading platforms would need to comply with the Australian Trade Reporting and Analysis Center (AUSTRAC), while recommendations were put forward to establish a market licensing regime. said there is.
This regime includes capital adequacy and auditing standards to demonstrate the operational integrity of the trading platform. Thalwar stressed that this is very important given that many exchanges offer high yield products at increased risk in order to gain a competitive edge.
Related: Australian Prudential Regulator Releases Roadmap for Cryptocurrency Policy
Bacina also said the “cautious approach” taken by the Australian government could make Australia an industry leader in digital asset regulation.
Once Australia introduces custody rules that enable technology for centralized owners of crypto assets, we will see how fast other jurisdictions such as Singapore and Europe move to make rules. will either become the leader in this field or catch up.
The Treasury Department is also looking to offer greater protection to investors by establishing a token mapping system that will help identify how certain digital assets should be regulated. according to In an Aug. 22 statement by Treasurer Stephen Jones.
