Crypto Regulation in Australia
• Internal documents from the Australian Treasury Department have revealed that crypto regulation in Australia may not be expected until 2024.
• The government is taking time to gather a complete picture of the industry and will host stakeholder roundtables on crypto licensing and custody in Q3 2023.
• Thousands of Aussies who used DIY pension funds, or superannuation funds, who bet on crypto face millions of dollars in losses due to lack of regulation.
Delayed Crypto Regulations
Internal documents from the Australian Treasury Department obtained by The Australian Financial Review (AFR) indicate that cryptocurrency legislation in Australia may be delayed well past 2024. According to Cointelegraph, the documents reveal that the government wants to release consultation papers in Q2 of 2023 and will host stakeholder roundtables on crypto licensing and custody in Q3. Submissions to cabinet are not expected until later in the year.
Frustration From Stakeholders
The delay in implementing a licensing regime has caused much frustration to crypto-related businesses and consumer groups. A brief from Australian Treasurer Jim Chalmers says: “Treasury expects some stakeholders to be disappointed with the perceived delay in implementing a licensing regime”. Despite this frustration, Treasury argues that due to decreased demand for cryptocurrencies, it can take its time hashing out details of regulations over a longer period of time.
DIY Pension Funds at Risk
The lack of regulation in Australia has also led to some problems with do-it-yourself pension funds. A recent report by Reuters revealed that thousands of Aussies who used DIY pension funds, or superannuation funds, who bet on crypto face millions of dollars in losses due to their unregulated nature.
Australians Bullish on Crypto
Despite these issues surrounding regulation, Australians remain bullish about cryptocurrencies according to an Annual Australian Crypto Survey for 2022 which found 26% plan on buying cryptocurrencies over the next 12 months. However 44% believe that current regulations are not sufficient enough for them invest yet.