Faryar Shirazad, the chief policy officer of Coinbase, stressed the need of legislative certainty in Australia during a recent Senate hearing on July 25 in order to establish the country as a significant center for web3 technologies. The announcement coincides with the country’s parliament debating a crypto bill that would regulate several areas of the cryptocurrency sector, taking cues from Europe’s Markets In Crypto Assets Regulation (MICA).
Shirazad emphasized that Australia’s prompt move will allow Coinbase to launch more goods and infrastructure specifically for the Australian market. He used the example of MiCA, the regulatory framework for Europe, which is planned to go into action no later than the beginning of 2025. The UK has accelerated its consultation process to coincide with this deadline. Global market participants feel a feeling of urgency as a result of such clearly defined regulatory milestones.
As business leaders deal with legal action from regulatory agencies like the US Securities and Exchange Commission (SEC), there is a growing need for clear regulations. The SEC has stepped up its regulatory operations this year, accusing prominent cryptocurrency exchanges like Coinbase and Binance of crimes including unregistered securities and improper registration.
The Digital Asset (Market Regulation) Bill 2023 was sponsored by Senator Andrew Bragg to address these issues and offer the appropriate framework. This law seeks to clarify key concepts and deal with pressing problems related to Australia’s bitcoin economy. Crypto enterprises have been actively looking for clarification and recommendations due to increased regulatory attention in recent months.
It became clear throughout the hearing that Australia is behind other regions in terms of the implementation of particular legislation and licensing systems, including Hong Kong and Europe. The managing director of Kraken Australia, Jonathan Miller, shared the view and discussed the difficulties of navigating the cryptocurrency market in the face of uncertainty. He emphasized the need of having a clear regulatory perspective while making judgments in the banking and cryptocurrency industries.
The Digital Assets Bill’s sponsor, Senator Bragg, highlighted that for the nation to once again compete for crypto regulation, quick action is required. While promoting Australia as a potential digital asset center, he underlined the need of safeguarding users of digital assets.
Industry participants anxiously anticipate clear and unambiguous laws that will promote expansion and innovation in the Australian crypto business as the discussion over the crypto bill proceeds. Clarity in regulations will not only provide companies the direction they need, but will also improve consumer protection in this fast changing environment.