Internal documents have reportedly revealed Australia’s potential timeline for crypto legislation. The documents, which were obtained through a Freedom of Information request, suggest that the Australian government may be moving towards implementing stricter regulations for the cryptocurrency industry.
According to the report, the documents reveal that the Australian Securities and Investments Commission (ASIC) has been working on a timeline for crypto regulation since early 2020. The timeline reportedly suggests that the ASIC plans to release guidance on crypto-related issues by the end of 2021, with further regulatory measures to be implemented in 2022 and 2023.
The proposed regulatory measures include licensing requirements for cryptocurrency exchanges and stricter rules around anti-money laundering (AML) and counter-terrorism financing (CTF). The documents also suggest that the ASIC is considering the possibility of introducing a “product intervention power” that would allow the regulator to intervene in the market if it believes that there is a risk to consumers.
The release of these internal documents comes amid growing concerns about the potential risks associated with cryptocurrencies. Earlier this year, the Reserve Bank of Australia (RBA) warned that cryptocurrencies are unlikely to replace traditional fiat currencies, citing issues around volatility, scalability, and regulation.
Consultation open! Today we released the token mapping consultation paper. This consultation is part of a multi step reform agenda to develop an appropriate regulatory setting for the #crypto sector. Read paper & submit views @ https://t.co/4W2msjhP9B @ASIC_Connect @AUSTRAC pic.twitter.com/OGHuZEGvDp
— Australian Treasury (@Treasury_AU) February 2, 2023
Despite these concerns, the crypto industry has continued to gain momentum in Australia. The country’s largest bank, the Commonwealth Bank of Australia, recently announced plans to launch a cryptocurrency trading platform, while several other major financial institutions have also expressed interest in the sector.
As the crypto industry continues to evolve, it remains to be seen how regulators around the world will respond. With Australia now reportedly working on a timeline for crypto regulation, it seems that the country is taking steps to address some of the risks associated with this emerging asset class.
