Crypto Regulation in Australia Delayed Until 2024, Documents Show
• Internal documents from the Australian Treasury Department have revealed that the implementation of cryptocurrency legislation in Australia may be delayed until late 2024.
• The delay has caused much frustration to crypto-related businesses and consumer groups.
• Despite this, demand for cryptocurrencies has decreased significantly in Australia, giving the government more time to hash out the details of regulations.
Crypto Regulations in Australia Could Be Delayed Until Late 2024
Internal documents from the Australian Treasury Department obtained by The Australian Financial Review (AFR) indicate that cryptocurrency legislation in Australia may be delayed well past 2024. According to Cointelegraph, the documents reveal that the government wants to release consultation papers in Q2 of 2023 and will host stakeholder roundtables on crypto licensing and custody in Q3. Submissions to cabinet are not expected until later in the year.
Frustration From Crypto-Related Businesses
The delay in implementing a licensing regime has caused much frustration to crypto-related businesses and consumer groups. A brief from Australian Treasurer Jim Chalmers, as seen by AFR, says: Treasury expects some stakeholders to be disappointed with the perceived delay in implementing a licensing regime. The brief adds: For example, consumer groups seeking immediate protection and businesses seeking regulatory legitimacy.
Decreased Demand for Cryptocurrencies
Despite the frustration from industry players, Treasury argues that in the wake of the collapse of FTX, the demand for cryptocurrencies has decreased significantly, which affords it more time to hash out the details of regulations: Treasury considers these concerns are somewhat mitigated by the current market conditions resulting in less consumer demand for crypto assets; and the need to complete the token mapping exercise to provide clarity on how any new licensing framework would operate in practice.
DIY Pension Funds Face Losses
The lack of regulation in Australia has also led to some problems with do-it-yourself pension funds. A recent report by Reuters revealed that thousands of Aussies who used DIY pension funds, or superannuation funds, who bet on crypto face millions of dollars in losses.
Australians Bullish on Crypto
Despite delays around regulation implementation Australians remain bullish about cryptocurrency investments as per Annual Australian Crypto Survey for 2022 where 26% said they plan on buying cryptocurrencies over next 12 months however 44% still believe sector is not sufficiently regulated hence hesitated taking plunge into investing cryptos