Experts Warn Australia Risks Falling Behind In Global Crypto Adoption Race

Key Takeaways

• Australian crypto market leaders urge the country to embrace crypto adoption.
• The call is coming after the UK’s recent unveiling of crypto adoption plans.
• Australia has been progressing towards greater regulatory clarity for crypto.

Australia has been making progress in regulating crypto, but the pace at which it is progressing has not satisfied some onlookers. Two Australian crypto leaders have warned that the country risks getting left behind in the global crypto adoption scene.

While speaking with the Australian Financial Review, Greg Medcraft, former chairman of the Australian Securities and Investments Commission (ASIC), and Mark Carnegie, a venture capitalist, stated that Australia must quickly develop a plan that encourages digital asset technology and investment.

The two market participants stated that it is high time Australia has a bipartisan approach to embracing the multi-million-dollar opportunity that the crypto industry provides.

For Medcraft, this is especially necessary seeing how other countries like Britain and the US are laying out frameworks for adopting crypto. If Australia is to remain competitive and lure crypto investment, it must signal the right environment. 

“All of these things are about signaling the right enabling environment, where people see you as a friendly environment for crypto-asset technology and investment. Whether it be tax, AML, markets, it is about creating a package,” he said.

Mark Carnegie also chimed in that Australia’s government has made tall promises for the crypto industry but has taken next to no action to implement them.

Carnegie, who has even had to move his venture capital firm to Singapore to find a more crypto-friendly jurisdiction, said that Australia’s approach to crypto would ensure that the country is left behind. 

“If we have a ‘walled garden’ approach in Australia rather than realizing that this is a global regulatory race, we will get completely left behind,” he said.

Notably, their renewed outcry is in response to plans announced by the United Kingdom (UK) to promote policies that will make it a global crypto hub through tax and start-up incentives. Rishi Sunak, chancellor of the Exchequer, stated that one of its first moves will be to recognize stablecoins as a valid form of payment. Among other plans, the Royal Mint is also working on an NFT. 

Australia’s crypto laws stay looming

The government of Australia is already making efforts to regulate crypto. Back in January, it called for the public’s input in its plans to overhaul the current framework for licensing and custody of digital assets.

Bloomberg reported that the move is part of reforms efforts aimed at encouraging innovation and protecting consumers in the crypto market. 

Meanwhile, Australian Senator Andrew Bragg as well as Treasurer Josh Frydenberg, have continued to work on beefing up the country’s crypto regulations.