Crypto laws loom for Australia as government seeks market views

Melbourne

AUSTRALIA'S government is asking businesses and individuals for feedback on its plan to overhaul licensing and custody arrangements for digital assets.

The proposals include requirements such as breach reporting obligations, compliance with anti-money laundering laws and a strategy on how to classify crypto assets, according to a government paper released on Monday (Mar 21).

The regime is being developed so that consumers can trust the exchanges they use to trade crypto, Minister for the Digital Economy Jane Hume said in the text of a speech on Monday. The government wants feedback on the regulation ahead of its finalisation later this year, she said.

"Government can't guarantee your crypto any more than it can guarantee a painting or a share in a company, and nor should it," she said. "But we can make sure Australian exchanges, custodians and brokers - Australian players in the crypto ecosystem - work within a regulatory framework that is better, safer and more secure."

Regulators around the world are battling with the speedy emergence of digital assets, aiming to strike a balance between spurring technological entrepreneurship while minimising risks to consumers. More than 800,000 Australians have made transactions with digital assets since 2018, according to the Australian Taxation Office.

As part of the reforms, Australia's government is seeking feedback on policies to address banks refusing to do business with emerging fintech firms. It will also review how they are appropriately taxed by the end of 2022, expecting the digital asset economy to grow to A$64 billion (S$64.3 billion) from A$2.1 billion by the decade's end, Hume said.

"Australia is serious about getting regulation right for the digital age, and emerging technologies like crypto are key," she said. BLOOMBERG