Internal documents came to light from the Australian Treasury Department ahead of the phase of the new crypto regulation implementation plan.
Australia is a very big region in the world, where the crypto sector saw significant adoption among the population. In 2021, many crypto proponents & companies showed their disappointment with the unclear regulatory policies. Many crypto companies claimed that they were debanked several times, despite operating business under full compliance. In 2022, Australian policy makers started to work on a new crypto regulation system and so far they are working on regulation enhancement strategies.
On 6 March 2023, The Australian Financial Review (AFR) published a report on behalf of a document received under Freedom of Information laws.
The report confirmed that the Aussie government aims to release the crypto assets regulatory consultation paper in the second quarter of this year.
After the release of the token mapping consultation paper, the government will hold a meeting with stakeholders on crypto licensing and custody in the third quarter.
Experts noted that final submissions to the cabinet is not expected until late in the year and possibly dragging out any decisions on crypto legislation well into 2024.
Australian Treasurer Jim Chalmers noted that Treasury believes that some stakeholders will surely find disappointment with all these steps because it is a time taking process. He also said that few crypto investors & businesses want sudden regulatory clarity over their activities in the crypto sector.
The report noted that the bankruptcy of several crypto companies, including the FTX exchange downfall, surely degraded the demand for cryptocurrencies in Australia and it will play an important role to give it more time to hash out regulations.