Regulation
Charting a path forward for crypto regulation in Australia is vital: Kraken
Crypto exchange Kraken has issued a warning over Australia’s late moves towards regulation, which could provide certainty for investors.
Kraken’s Managing Director for Australia, Jonathon Miller, says Australians love cryptocurrencies, with almost one in four Australians owning cryptocurrencies.
This is the highest adoption rate in the world.
“Despite this rapid adoption of blockchain technology, we have fallen behind in implementing a regulatory framework that will govern digital assets in the long term,” Miller said.
For the latest crypto news, sign up here to receive Stockhead’s free daily newsletter.
“While interest in digital assets in Australia and globally has rebounded, the lack of clear regulation could see us fall behind major financial markets like Singapore, Europe and the UK.
“Regulation, when implemented well, provides entrepreneurs and established industry players with a rulebook they can refer to when making decisions, gives investors a better idea of which crypto projects are in invest and protect consumers from unscrupulous practices.”
Shaping digital asset regulation
So what does good regulation look like?
“Earlier this year, Kraken was invited to collaborate with other leading experts in the Australian blockchain and digital assets sector to develop a set of recommendations for how a regulatory framework could work,” Miller said .
“Here are some of the key takeaways from this work (at the Custody and Asset Management Roundtable) which form the basis of what Blockchain Australia will champion as we seek to develop a suitable regulatory framework.
Solving Crypto Business Debanking
“One of the most frustrating things individual investors face is unjustified denial of service from traditional financial players, and this also affects confidence in the business side of the digital assets industry,” Miller said. .
“Blockchain Australia recommends creating a standard framework for banks to assess risks when dealing with crypto businesses, inspired by successful models like Hong Kong’s, to bring more trust and certainty to transactions between cryptocurrencies and fiat currencies.”
MORE FROM STOCKHEAD: SEC Approved Ethereum ETFs | Australia’s Big New Crypto Exchange | Why crypto is more than just a currency
Information sharing and scam mitigation
Miller said combating scams requires improving information-sharing pathways between banks, digital asset exchanges (such as Kraken), and regulators.
“Establishing industry-wide standards for scam prevention through the use of advanced analytics helps protect consumers and encourage safer crypto transactions,” he said.
Create a clear token taxonomy
“Crypto” is shorthand for a very broad range of thousands of assets.
And Miller said developing a clear token taxonomy to differentiate between different types of digital assets would go a long way in providing clarity to help investors make informed decisions as they navigate the crypto market with more confidence.
Consumer education programs
“As an industry, we have a lot more educational work to do than just emphasizing how to avoid scams,” Miller said.
“Launching comprehensive consumer education programs covering all aspects of digital assets should not just be an aspiration, it should be table stakes for any crypto company.
“These resources must be accessible to a broader audience, including stakeholders, institutional audiences and individual investors.
“By developing a central hub for accurate educational materials and aligning them with industry needs, we can close the knowledge gap and drive greater adoption of crypto.”
Visit Stockhead, where ASX small caps are big business
Simplifying the tax treatment of crypto-assets
Miller said crypto adoption was being held back by people not understanding their tax obligations when trading or transacting with cryptocurrencies.
“Simplifying tax reporting and compliance processes for crypto assets will go a long way in setting expectations for the crypto community,” he said.
“Clearer tax classifications and a standardized reporting process would make it easier for everyone to fulfill their tax obligations without confusion. »
Jail
“We advocate for clear custody regulations, with an emphasis on regulating entities that exercise direct control over consumer assets,” Miller said.
“A flexible and adaptable regulatory approach that differentiates between direct and indirect control of assets will ensure that custody practices keep up with technological advances and continue to effectively protect consumer assets.
A way forward
Miller said the blockchain industry, despite its growing popularity, was still in its infancy – especially compared to traditional finance.
“Regulation that protects consumers while allowing market competition and innovation is a difficult balance, but it will be vital as the economy becomes even more digital,” he said.
“Slow action or the wrong approach by policymakers could risk capital flight and see Australia lose its leadership in a market expected to account for $3 trillion in global trade by 2030.” has a lot at stake – and Kraken is proud to be a part of it. to help the industry grow in Australia.
This content first appeared on stockhead.com.au
Any views, information or opinions expressed in this article are solely those of the person interviewed and do not represent the opinions of Stock head. Stockhead has not provided, endorsed or otherwise assumed any responsibility for the financial product advice contained in this article.
SUBSCRIBE
Get the latest news from Stockhead delivered to your inbox for free. Click here
Originally published as Charting a path forward for crypto regulation in Australia is vital: Kraken