Alan Kirkland, a member of the regulatory body ASIC in Australia, stated that most crypto-based businesses must obtain a financial services licence. This statement caused concern in Australia’s cryptocurrency industry
ASIC’s Regulatory Through Sanctions Approach
In his speech at AFR Magazine’s crypto and digital asset summit, Kirkland emphasized that unlicensed businesses are at great risk. This approach has raised concerns that it will hinder innovation in the sector and cause entrepreneurs to turn abroad.
ASIC’s approach is similar to enforcing regulations like the US regulator SEC. The fact that there is no clear law yet causes the sector to remain in uncertainty in the country.
Industry Leaders Request Regulatory Updates
Many leaders in the cryptocurrency industry state that existing legal loopholes are negatively impacting the industry. It is stated that clear and up-to-date laws are needed for the growth of the industry. “Updating regulations will support our economy rather than suing organizations,” Finder Founder Fred Schebester said. he said.
Industry representatives say that due to legal uncertainty, many companies are developing their products in secret and later plan to move abroad.
Government Legal Work and Delays
The Albanese government had said that draft laws requiring cryptocurrency exchanges to obtain a financial services license would be presented in 2024. However, the delay in this process caused concern in the industry. Government Representative Andrew Charlton said: “This reform is very important for the government, but we are working to get it done right.” He stated that the work is continuing.
The Opposition party criticized the government for delaying regulations, stating that regulators were trying to take over the legislative role.
Criticisms of the Opposition Party
Liberal MP Andrew Bragg emphasized that it was dangerous for ASIC to take on the role of the legislature. Stating that this situation poses a risk for the country, he said, “It is very dangerous for our country that the regulator tries to take on the legislative duty.” he said.
As a result, the crypto industry in Australia continues to face problems due to unclear regulations. Both the government and regulators are expected to work collaboratively to develop clear regulations that suit the needs of the industry. This can create a balance that supports innovation while also protecting investors.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
