Australian Crypto Firms Lobby For Better Regulation

Jul 6, 2021 | Decrypt News | 0 comments

australian-crypto-firms-lobby-for-better-regulation

Australian crypto firms are lobbying the government for clear regulation of the industry. 

Among the firms responding to the government’s call for submissions on establishing a regulatory framework are cryptocurrency broker Swyftx, crypto exchange Kraken, and R3, an enterprise software platform. 

In its letter to the Senate Select Committee on Australia as a Technology and Financial Centre, Swyftx pushed for “clear and robust registration and licensing requirements for digital asset service providers.” Swyftx also argued that the government needs to “prevent traditional banks withholding services to digital asset providers (acting as unauthorized gatekeepers to the system).”

The cryptocurrency broker claimed that banks have been unwilling to do business with digital assets companies on an “ill-advised notion of increased risk.” 

But what exactly are these firms proposing? 

Crypto firms’ wishlists

The crypto firms want regulatory clarity for the industry in order to ease concerns from banking institutions as well as potential customers. 

According to Kraken, existing regulation does not adequately meet this need. “We encourage policy makers to carefully assess the risks that virtual assets pose and consider alternative regulatory approaches that are fit for purpose,” the exchange wrote in its own submission to the Select Committee. 

Bitcoin ETF Presents ‘Real Risk of Harm’: Australian Regulators

Kraken broke down this would-be wishlist of bespoke crypto regulation into four categories—licensing regimes, a travel rule, stablecoins, and crypto derivatives. 

The exchange argued that digital currency exchanges—much like itself—should only be regulated to address money laundering, terrorism financing, and sanctions risks. The firm accepted the need for a travel rule, but said a “phased-approach” was required to implement one, and that it was unclear whether or not it should apply to stablecoins. 

‘I Won’t Stand In Crypto’s Way’: Australia’s Financial Services Minister

Lastly, Kraken argued that futures contracts that reference digital assets should not fall within the Australian Securities and Investments Commission’s remit. 

R3 echoed Kraken’s view that existing financial services regulations are not sufficient for the crypto industry, and a bespoke regulatory framework would provide better clarity for the industry. 

“Layering additional regulations on top of already robust and effective frameworks would only complicate the industry and inhibit innovation with no resulting upside,” the firm said.

News Source from Decrypt.co

Related Articles

Here are the 12 biggest crypto hires thus far in 2021

Here are the 12 biggest crypto hires thus far in 2021

Quick Take There has been a big increase in the flow of talent from Wall Street to the crypto world. We take a look at the 12 biggest moves that have happened so far this year. This feature story is available to subscribers of The Block Daily. You can continue reading...

Amazon wants to hire a digital currency and blockchain product lead

Amazon wants to hire a digital currency and blockchain product lead

E-commerce giant Amazon appears set to toe the digital currency waters, outlining a blockchain-specific role in a new job ad. The job spec appears wide-ranging, mentioning "central bank digital currencies" and "distributed ledger" among other catch-all phrases for...

DeFi industry draws in commercial banks? Siam bets with $110M fund

DeFi industry draws in commercial banks? Siam bets with $110M fund

Thailand’s oldest bank sees blockchain and DeFi as the future of global finance and is seeking to invest in the emerging digital landscape. While serious institutional interest in crypto is perhaps becoming more of an established trend than an emerging narrative, the...

Pin It on Pinterest

Share This