Senator warns lack of regulations could harm Australian crypto innovation

Conservative Australian senator, Andrew Bragg, has asserted that Australia should introduce higher regulations for crypto property if the nation is to “stay ahead of the game” and foster innovation.

Appearing on Sky News, the member of the ruling Liberal Party — who’s chairing a senate inquiry into Bitcoin and different digital property — harassed that crypto asset merchandise have already proliferated, emphasizing the necessity for Australia to domesticate a optimistic business local weather and provide client protections for the burgeoning trade.

“The reality is these products are out there now, people are using them,” he mentioned. “We need to make sure that we have the right policy and regulatory environment to be able to maintain our competitive advantage, but also to protect consumers.”

“People are using [digital assets] and we need to have a thorough review of it and see what sort of policy Australia wants to have if we want to be a tech and financial center.”

The senate inquiry into digital property that Bragg is chairing was introduced earlier this week. A paper compiled on May 19 indicates the committee will study cryptocurrency policy in Australia with consideration of the regulatory approaches of the United States, Canada, the United Kingdom, and the EU.

The paper warns {that a} failure to ship complete crypto regulations might drive funding offshore and undermine Australia’s competitive standing throughout the trade:

“The committee will be assessing options for the development of a comprehensive regulatory framework for cryptocurrency and digital assets. We want to know what type of policy provision and legal certainty is needed to drive private investment into Australian digital assets rather than the investment occurring offshore.”

The inquiry will look into the alleged apply of “de-banking” — the place conventional banks droop services to fintech firms who compete with legacy monetary establishments. Bragg attributed the reported prevalence of de-banking to a “lack of sophistication in Australia relative to comparable markets.”

Bragg famous it’s within the pursuits of the standard monetary system to repress the expansion of the cryptocurrency and digital asset industries, stating:

“There is a strong vested interest in the banking and finance sector to keep the status quo in place where the banks and the public sector sort of, you know, run currency. And we need to interrogate that to make sure that that is the right thing for Australia, because when innovation happens, the solution is not to close the door on it.”

In response to questions relating to if Bitcoin’s worth is susceptible to manipulation, Bragg famous the committee’s intention to be “thoughtful and cautious,” however emphasised the prevalence of “unsavory” practices within the conventional markets.

“Everything is open to market manipulation,” he mentioned. “There has been a lot of activity the banks have undertaken over the time as the custodians of the financial sector […] which has been unsavory.”