In a report made on Oct 20, Australian lawmakers said the country needs a new crypto regulatory regime to remain competitive.
The study urged lawmakers on wide-ranging changes which would allow more cryptocurrency-focused businesses in the country. Along with more business, it also encouraged more direct pathways for these companies to access banking services.
Until now, a large number of major Australian banks refused to do business with crypto-linked businesses. Australian digital asset traders have reported cases of “de-banking” such as one man with over 90 rejections from banks.
However, this new report reveals a potential change of tone from financial and regulatory officials.
Some of the recommended changes include a new protocol for market licenses for crypto exchanges. In addition, it calls for a more straightforward framework for the custody of assets. Lastly, it mentioned new company rules for DeFi projects.
Although commissioned in March of this year, the report contents will provide the basis for Australia’s forthcoming legislation on digital assets. Andrew Bragg, a former Australian regulator has confidence in support for his future regulation recommendations.
He warned if things don’t change, more crypto businesses will move out of the country. “The more that happens offshore, the more parts will migrate offshore […] especially if they can’t get back incentives in Australia. It’s quite strategically important to us to have this capability onshore and be a strong digital economy,” Bragg said.
Australian crypto boom
Moreover, Bragg’s report mentions the likes of Singapore and the U.K. as competitors in the growing crypto market. “The agenda here is to try and be as good as Singapore or the UK. We want to be a world-leading jurisdiction for cryptocurrency.”
It also looks to the U.S. state of Wyoming as a good example of crypto business innovation and growth.
Australians have some of the highest rates of crypto adoption. According to reports, in August of this year, Australia surpassed the U.S. in crypto adoption. However, the progress of its homegrown crypto industry isn’t as promising and stagnate, according to Blockchain Australia.
Bragg commented on the lack of drive in the Australian domestic crypto business industry, “There’s a strong anti-competitive element in Australia where the incumbents don’t like innovation and their solution is to push new ideas into old regulatory frameworks that were designed for something else.”