Australia Moves to Regulate Cryptos: Banks, Government, and Crypto CEOs Weigh In

• Australian crypto CEOs have cautioned against defining all digital assets as financial commodities after the assistant treasurer’s recent comments.
• National Australia Bank (NAB) plans to create a stablecoin, according to information recently provided to the Australian Financial Review.
• Stephen Jones, Assistant Treasurer and Minister for Financial Services, recently discussed the country’s regulatory framework for cryptocurrencies in an interview with the Sydney Morning Herald.

Australia is beginning to take the cryptocurrency industry more seriously. With the recent comments of the Assistant Treasurer Stephen Jones, the country is taking steps to better regulate digital assets.

National Australia Bank (NAB) is also joining the cryptocurrency game. They plan to create a stablecoin, as per information recently provided to the Australian Financial Review by a senior official. This will be a huge step for the country, as it shows that the banking sector is looking to get involved and learn more about the technology.

The Assistant Treasurer and Minister for Financial Services recently discussed the country’s regulatory framework for cryptocurrencies in an interview with the Sydney Morning Herald (SMH). In the interview, Jones acknowledged that the government was working on a “token mapping” effort to establish which crypto assets to regulate. He stated that the government was planning to commence a consultation process with the industry shortly.

However, the minister also said that he was “not that drawn” to create an entirely new set of rules for what, in his opinion, is fundamentally a financial product. This statement caused some backlash from the cryptocurrency community, as many CEOs warned against classifying all digital assets as financial goods.

The sentiment from the Australian Securities and Investments Commission (ASIC) and Commonwealth Bank, one of Australia’s „Big 4“ banks, is that cryptocurrencies should be regulated as financial products. Jones said that “if it looks like a duck, walks like a duck, and sounds like a duck then it should be treated like one.” Participants in the cryptocurrency market, on the other hand, argued that the minister should consider the differences between each crypto asset before attempting to regulate them all the same.

It is clear that the cryptocurrency industry in Australia is evolving. With the government, banks, and crypto firms all working together, it is likely that further regulation will be put in place. As the industry continues to grow, more clarity and transparency are needed in order to ensure its long-term success.