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Industry Experts Urge Swift Action on Digital Asset Regulation in Australia Post-Election
Following the re-election of the Labor government in Australia, industry specialists are pressing for rapid implementation of digital asset legislation. They caution that without prompt regulations for Digital Asset Platforms (DAPs) and stablecoins, Australia risks lagging behind other global markets.
The Labor Party’s decisive victory on May 3 has reignited conversations around fulfilling earlier commitments to create a sound regulatory framework tailored for the digital asset sector by next year, with some voices advocating for an expedited timeline.
Urgency for Clear Regulatory Framework
Caroline Bowler, CEO of BTC Markets, stated, "Labor’s re-election provides policy continuity and the stable governance necessary for implementing long-term economic reform… it brings with it a legislative mandate and a timeline.”
John O’Loghlen, managing director for APAC at Coinbase, echoed this sentiment, highlighting the government’s duty to act promptly. He proposed the creation of a Crypto-Asset Taskforce during the first 100 days of the new term. This taskforce would be responsible for drafting legislation that safeguards consumer interests, promotes innovation, and curtails the flight of talent and investments to more accommodating jurisdictions.
O’Loghlen remarked on the accelerated pace of global regulatory changes, urging the Albanese administration to position Australia as a hub for Web3 development and digital finance, thereby unlocking the productivity growth that these technologies can deliver.
Calls for Legislative Action from Industry Leaders
Vakul Talwar, head of Crypto.com, emphasised the necessity for rapid progress, asserting that substantial advancements in establishing effective legislation should ideally occur by year-end. Delaying could result in a loss of foreign investment and innovation opportunities, redirecting them to countries with clearer regulations.
Joy Lam, from Binance, expressed cautious optimism following consultations between the Australian Securities and Investments Commission (ASIC) and government representatives since 2023. She highlighted the urgency, pointing to the UK’s new draft laws, the US’s advancements with stablecoins, and the EU’s effective implementation of MiCA regulations as motivators for Australia to emulate swift regulatory action.
“There’s a clear shift towards providing the essential regulatory framework for sustainable industry development. Therefore, time is of the essence,” Lam stated.
Conclusion
As the momentum for regulatory clarity increases globally, Australian stakeholders are calling for immediate and decisive actions from the re-elected Labor government. The development of a comprehensive approach to governing digital assets will not only protect consumers but also foster innovation and retain talent within the nation, ensuring that Australia remains competitive in the evolving landscape of digital finance.
