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Australian Exchanges Respond to New Australian Treasury Crypto Proposal
Summary
- Australian crypto exchanges weighed in on the Government’s proposal for updating crypto regulations under the generic “financial services” banner.
- The reception was generally optimistic, although some platforms believe the framework will need to be adjusted for crypto-specific services like NFTs.
- Exchanges and other crypto businesses have until December 1 to provide feedback to the Government.
Australian exchanges Independent Reserve, Swyftx and Kraken Australia have reacted to the Australian Treasury’s crypto proposal through official statements. The proposal, put forward by Jim Chalmers, recommends that digital currencies be regulated through the same infrastructure as generic financial services. Although most commentators welcomed new legislation to protect customers from rising levels of fraud, they were firm that nuance would have to be added over time to account for the intricacies of the digital currency market.
Independent Reserve and Swyftx Meet Proposal With Positivity
Media releases from two of Australia’s most reputable exchanges – Swyftx and Independent Reserve – demonstrated an eagerness to work together with the government to move the regulatory proposal forward. In a statement, Independent Reserve welcomed “action on regulatory reform to protect Aussie crypto investors.”
The exchange’s CEO went on to say:
Today’s recommendations are a milestone for the Australian crypto sector. This isn’t just about regulation; it’s about restoring trust. We firmly believe these changes will drive investment, provide certainty to the sector and ultimately, increase consumer protection.
Adrian Przelozny, CEO of Independent Reserve Swyftx General Counsel, Adam Percy, was similarly bullish on the proposal’s potential: “The Government consultation is thoughtful and we agree that the primary focus should be to make sure cryptocurrency users can access blockchain technology with appropriate protections.”
Kraken Australia Blindsided by Proposal
Kraken’s Australian branch was the least enthusiastic on the Treasury’s proposal, suggesting that the changes were announced “without consultation”.
The statement went on to say.
Australia is now in the unfortunate situation where our regulation has taken a very long time, so we’re taking the approach of shoehorning crypto into existing financial services regulation… Our concern is that this approach creates ample opportunities for the regulation to ignore the nuances of the technology (for example, unique services like NFTs).
Jonathon Miller, Managing Director of Kraken Australia However, the team was optimistic that their exchange could work in consultation with the government between now and the proposal’s deadline (December 1st) to iron out the “innovations in crypto that might fall outside the conventional ‘financial services’ box”.
All statements emphasised that the regulatory framework must leave room for innovation as the sector evolves. However, the overall reception seems to be positive as each platform believes the legislation is a huge step toward legitimising the crypto industry in Australia.
Author
Ben Knight
Ben Knight is a writer and editor from Melbourne with a passion for all things music and finance. He enjoys turning complex topics – especially the technical details of cryptocurrency – into digestible bites that anybody can understand. He acquired his Master’s in Writing, Editing and Publishing from RMIT in 2019 and has run his own creative writing business ever since.
