Regulation
Global Cryptocurrency Exchange Coinbase (COIN) Expresses Concern Over “Ongoing Law Enforcement Regulation” in Australia
Nasdaq-listed cryptocurrency exchange Coinbase (COIN) is concerned that “ongoing regulation through enforcement” is not “helpful to the overall direction of the industry” in Australia ahead of the expected bill, senior executives at the cryptocurrency exchange told CoinDesk in an interview.
“We want to avoid continued regulation through enforcement actions, given all the healthy interactions we’ve had (with regulators) in recent times that didn’t exist before,” Coinbase’s managing director for Asia Pacific said. John O’Loghlen said in an interview.
Australian Treasure previously announced plans to publish by the end of 2024 a draft law covering licensing and custody rules for crypto asset providers.
“There is clearly an interesting macro theme and continued increase in consumer adoption with the recent approvals of Spot ETF Products in Australia And United States and we want to make sure that we don’t muddy the waters in that gray area ahead of the bill.”
However, Australia’s market regulator, the Australian Securities and Investments Commission (ASIC), has not slowed down its approach to the sector.
Last month, Dr Rhys Bollen, ASIC’s senior executive manager of digital assets, warned an audience of industry players who are following precedents set in recent cases it has filed against crypto entities.
“We have been vocal about our concerns that ASIC may continue to enforce the law,” during “four or five roundtables” in recent weeks, O’Loghlen said, although he praised the new ASIC team for “reaching out to all the industry players” … “proactively having” “a coffee chat with about 50 groups.”
In July, a parliamentary committee report recommended that the Australian government acknowledge that ASIC has “has not fully fulfilled its regulatory mission.” Earlier this month, Coinbase hired David Menzwho has held senior roles at ASIC and the Australian Treasury’s Digital Assets and Crypto Unit, as head of APAC policy.
“Our current policy priority is to continue to nurture those relationships with ASIC and Treasury,” Menz said. “We will be working hard to respond to the draft legislation when it is released.”
Menz also said Coinbase hoped “this wouldn’t just be a rudimentary licensing framework,” although that would be “better than nothing at all.”
In this context, “we support a Australian Financial Services Licence (AFS)“to conduct crypto-related activities and hopes for the inclusion of staking services, stating that no licensed entity should stake customer assets without “customer permission.” We encourage the inclusion of these types of interesting details in the exhibition bill,” Menz said.