The Australian government has postponed the implementation of its crypto regulation until the end of 2024, according to recent reports. The government had intended for a more concrete draft of crypto law to be available by 2022, however, due to sluggish submissions from stakeholders and objections to various regulatory requirements, this date may be extended well past 2024.
In the third quarter of 2023, when a consultation is planned to start, stakeholders will have the opportunity to offer suggestions on how crypto authorization and ownership should function. This follows the token mapping survey conducted by the Australian Treasury, which was launched at the beginning of February and ended on Friday, 3rd of March.
We will give you all the information you require regarding this most recent development in this article.
Australians’ Involvement in Cryptocurrency
Five percent of Australians, or over 1 million people, are bitcoin owners, according to Roy Morgan’s Research Institute. According to some surveys, twenty percent of Australians are believed to be cryptocurrency owners. The number of people working in this sector is increasing. However, it seems that just a small percentage of bitcoin owners are aware of the risks that are associated with investing in digital assets.
Industry experts applauded the government for adopting a practical approach to the regulation of the industry. Experts believe that the delay will enable the government to regulate cryptocurrency exchanges with greater consideration and nuance, which will eventually help the sector and the Australian economy as a whole.
Investors may lose some or all of their money due to hacks, scams, rug pulls, or bankruptcy on the cryptocurrency market, which has historically been prone to these events. Events in 2022 have shown that even the most well-known platforms may be unsafe to employ and may collapse, bringing down the entire industry.
Reasons Behind the Delay in Crypto Regulation in Australia
It is important to note that regulations are part of the Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill, which was passed in 2020.
To comply with the law, cryptocurrency exchanges operating in the country will need to register with the Australian Transaction Reports and Analysis Centre (AUSTRAC). These exchanges will also have to meet a range of reporting and compliance obligations aimed at preventing money laundering and terrorism financing.
Slow responses from stakeholders and opposition to some of the regulatory norms that officials wish to establish are supposedly to blame for this implementation delay. The parties involved have been urged by Australia’s Treasurer, Jim Chalmers, to put in their best efforts in order to complete the token mapping process and develop a precise licensing framework with real-world ramifications.
The decline in interest in cryptocurrencies may indicate that fewer customers may be harmed by the legislative framework’s delay.
The country is among the countries hosting the biggest number of Bitcoin ATMs, therefore despite the delay in regulation, Australia keeps embracing some aspects of the bitcoin business better than its international competitors.
This highlights the opportunities and challenges for Australian cryptocurrency startups and entrepreneurs in the absence of regulations.
How the Delay in Crypto Regulation is Impacting Australian Crypto Traders and Businesses
The delay in crypto regulation has impacted Australian crypto traders and establishments pursuing regulatory legality such as the online casinos, as well as consumer groups seeking immediate protection. Without a clear-cut regulatory framework, it is difficult for businesses to operate with certainty in the cryptocurrency industry.
Opportunities and Challenges for Australian Cryptocurrency Startups and Entrepreneurs in the Absence of Regulations
The absence of regulations presents opportunities and challenges for Australian cryptocurrency startups and entrepreneurs. While the lack of regulations means less oversight and more freedom to innovate and make profit from crypto gambling, it also means less consumer protection and a more difficult path to legitimacy.
The Australian government has emphasized that it will continue to work closely with the industry to ensure that the new regulations are implemented in a way that minimizes disruption and maximizes the potential benefits of cryptocurrency for the Australian economy.
In the absence of crypto regulations, Australian investors could exercise caution and conduct thorough research before investing in cryptocurrency especially in crypto gaming. They could also seek advice from trusted professionals and be aware of potential risks associated with the cryptocurrency market.
Why Crypto Awareness and Education in Australia Matter
Crypto education and awareness are more important than ever in Australia, where the absence of regulations means more responsibility falls on the individual investor. By educating themselves on the risks and benefits of cryptocurrency, investors can make informed decisions and avoid potential pitfalls.
Prospects for Future Crypto Legislation in Australia
In Australia, the cryptocurrency business is uncertain as a result of Australia’s delay in enacting crypto regulation. However, there are prospects for future crypto legislation, and industry experts predict that the delay may give the government more time to create a comprehensive and effective regulatory framework.
The cryptocurrency industry has experienced rapid growth in recent years, with many people using cryptocurrencies for various purposes, such as investments and online transactions. As the industry grows, so too does the risk of money laundering and terrorism financing, which is why governments around the world are looking to regulate the industry.
The Australian government has stressed that the delay doesn’t mean less determination to regulate the cryptocurrency market. Instead, it is a recognition of the difficulty of the problems at hand and the requirement for a carefully designed regulatory structure that balances the conflicting interests of various stakeholders.
As the world becomes increasingly digitized, the regulation of the cryptocurrency industry will become even more important. Governments must continue to work with the industry to develop a regulatory framework that can keep pace with the industry’s rapid growth. This will ensure that the industry operates transparently, securely, and with accountability.
Australia’s delay in putting in place new regulations for cryptocurrencies gives the government and the industry a chance to work together. This collaboration is set to develop a practical, effective, and growth-oriented regulatory framework.
With the right regulations in place, the cryptocurrency industry in Australia can continue to grow and evolve, bringing benefits to consumers and the wider economy while also preventing illegal activities such as money laundering and terrorism financing.