The Senate Select Committee on Australia as a Technology and Financial Centre, has presented a report calling for regulation of the crypto industry.
The committee's final report makes 12 recommendations across the areas of digital assets, fintechs and decentralised finance, which it says will drive opportunities for innovative businesses, protect consumers, and enhance Australia's competitiveness.
Also read: How do you mine Bitcoin?
In particular, the committee's recommendations will provide, for the first time, a clear regulatory framework for the digital-assets sector in Australia, like cryptocurrencies.
Liberal senator Andrew Bragg said this would enable Australia to compete with other countries like Singapore and the UK for investment and opportunity in the emerging sector.
“Australia can be a leader in digital assets,” Bragg said.
“This means Australians can access new choices and lower prices. It means Australians can have more control of their financial destiny rather than being dependent on endless intermediation.
“The committee has recommended a comprehensive crypto framework to deliver Australian leadership. We’ll be competitive with Singapore, the UK and the US.
“This will drive investment and jobs into Australia.”
Aussie crypto businesses welcome regulation
In response to the report, BTC Markets CEO Caroline Bowler said it not only met her expectations, but exceeded them.
“Throughout this inquiry process, the senator has recognised the dynamism of digital assets,” she said.
“For an industry that is moving at such a rapid pace, these pragmatic recommendations are going to give a massive leg up in putting Australia on the global fintech map.
“The proposed market-licensing regime for digital currency exchanges is a welcome move and something we had anticipated.”
Bowler said BTC Markets had been investing heavily in new infrastructure over the past year and worked on projects underpinning market operation in preparation for a regulatory framework.
“As indicated in the report, the framework is being built around consumer protection, promotion of investment and to generate market competition, which we wholeheartedly welcome,” Bowler said.
“For us, the 'surprise and delight' elements of this report are firstly, how quickly it's come to fruition, and secondly on the recommendation that the Australian Government establish a new decentralised autonomous organisation company structure.”