Internal documents indicate that Australia cannot expect cryptocurrency regulation before 2024 as the government takes time to gain a thorough understanding of the industry.
Legislation possibly only after 2024
According to internal documents from the Ministry of Finance in Australia obtained by The Australian Financial Review (AFR), cryptocurrency legislation in the country may not be introduced until after 2024.
Earlier it would have become clear that the Australian government wants to publish consultation documents in the second quarter of 2023 and hold round table discussions with stakeholders on crypto licensing and custody in the third quarter.
Submission of the legislation to the Australian Cabinet is expected later that year. The delay in introducing a licensing regime has caused much frustration among businesses and consumer groups dealing with cryptocurrency.
While players in the industry are frustrated, the Australian Treasury Department claims that demand for cryptocurrency has dropped significantly following the collapse of the once-popular cryptocurrency exchange FTX. This would give them more time to work out the details of the regulations. They say the following about this:
We believe these concerns are being mitigated somewhat 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 work in practice.
Crypto sector Australia is growing
The regulatory delays come at a time when Australia’s crypto sector is growing significantly. According to the 2022 annual Australian crypto survey, 26% of adults in Australia plan to buy one or more cryptocurrencies in the next 12 months.
However, the survey also showed that 44% of Australians believe the industry is not adequately regulated, making them hesitant to take the plunge. Still, these figures finally show that there is a lot of interest in Australia in the field of cryptocurrencies.