Australia May Delay Crypto Laws Until 2024

Key Points:

• Crypto law in Australia may be delayed until 2024 or later.
• The sector has been anticipating the next stages in the Australian Labor government’s token mapping initiative.
• The documents also suggest that the government has established a separate “crypto policy section.”

Crypto regulation in Australia may be postponed until 2024 or later, as the government intends to take its time in order to have a comprehensive understanding of the business.

According to documents acquired by The Australian Financial Review under the request of information legislation, the government intends to distribute consultation papers in the second quarter of 2023 and to have stakeholder roundtables on crypto licensing and custody in the third quarter.

The government papers obtained under the Right of Information Act say that Australian rules to regulate the crypto business and safeguard retail customers may be more than a year away.

Although the government has not specified a timetable for enacting crypto law, it stated last month that a consultation paper on the subject would be released in the middle of this year.

The sector has been waiting for the next stages in the Australian Labor government’s token mapping effort, which was launched three months after the government took office last year and ended responses on March 3.

Final cabinet proposals are not expected until late in the year, potentially postponing any crypto legislative choices well into 2024 and beyond.

Authorities predict aggravation from crypto firms and consumer organizations owing to the protracted delay, according to one official briefing.

According to a Swyftx study released in September of last year, nearly one million Australians expected to buy cryptocurrencies for the first time in the following 12 months, increasing total cryptocurrency ownership to more than five million.

Nevertheless, the records show that the government has established a separate crypto policy unit within the Treasury department.

In a meeting with Treasury in November, the crypto policy section allegedly suggested prospective criteria for crypto licenses, including fit and proper person checks, capital restrictions, and duties to report bad actors and frauds in the market. The group also considered strengthening consumer safeguards.

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