Australia appears ready to follow with a full set of comprehensive crypto regulations. The sector has enjoyed gigantic political party support. While the current Albanese government initially pledged action by 2023 but failed to deliver legislation, the opposition has promised swift action if elected. Even with the delay, the Treasury has been very much at work writing this legislation all year, and its finalization is on the cusp. Whoever wins the next election, the crypto industry is looking forward to some long-overdue regulatory clarity. That long-awaited clarity now appears to be at hand.
It’s no wonder that the industry views the 2024 election as a potential game-changing inflection point. We recognize that doing so could unlock enormous opportunities for innovation and investment. The current regulatory inaction has caused stagnation and a resulting brain drain of talent to more crypto-friendly jurisdictions. With both major parties now prioritizing crypto regulation, there is optimism that Australia can catch up to other global leaders in the space.
Regulatory Proposals and Promises
The Australian Labor Party (ALP) was justifiably criticized for its lackadaisical handling of crypto regulation. This tardiness was due to their absence of any blockchain policy blueprint upon assuming office. As recently as December, when the ALP published its alternative crypto regulatory proposals, such an outcome would have seemed unlikely.
The new federal Opposition Shadow Treasurer, Angus Taylor, has promised something quite daring. Within the first 100 days of taking office, he promises to issue draft crypto regulations. Though vague, this commitment is a powerful signal of the opposition’s intent to lead on crypto regulation and offer the developing industry clearer guidelines in which to operate.
The Treasury’s interest is not hypothetical, as they are currently writing legislation to regulate digital asset platforms. They are updating the payments system – two complementary releases expected to come this quarter. Combined with these steps, this indicates that the administration is going to great lengths to develop a robust regulatory framework. They intend to serve the whole digital asset community.
Industry Perspective and the Path Forward
The industry has expressed its frustration with the pace of regulatory development. They are pushing for some seriously urgent action to ensure that we realize the full promise and benefits of this changing crypto space.
"The next government must move beyond consultation and into legislation." - John O’Loghlen, Coinbase managing director for APAC
Advocates and industry players alike stress that consistent federal regulations will lead to more innovation, more investment, and better consumer protection.
"Australia has ground to make up, and I would anticipate this also being a factor in the savvy move by both parties." - Caroline Bowler
The industry has been lobbying hard for the establishment of a “Crypto-Asset Taskforce (CATF)” within the first 100 days of the new administration. This pilot program is designed to accelerate the development and adoption of smart regulations.
Election Impact and Crypto Users
Where either party comes down on the idea of regulating crypto will have a big effect on who wins the next election. A recent poll found that fully half of crypto voters would vote for a pro-crypto candidate regardless of any other issue.
With a sizeable portion of Australian voters as crypto investors, this issue could determine the outcome of the election. This further underscores the increasing political power of the digital asset sector.
"Irrespective of who gets in, we’re in a better position than we were about a year ago." - Amy-Rose Goodey, CEO of the Digital Economy Council of Australia
The previously very vocal about tech progressive Greens party has been quiet on Crypto. The populist conservative One Nation party has strongly fought against debanking and CBDCs, making the political landscape of digital assets that much more complex.
