Blockchain Australia is asking the state for a safe haven for cryptocurrencies

Blockchain Australia, a major association representing the local cryptocurrency industry, has officially submitted its recommendations on the regulation of cryptocurrency to the federal government.

Last Friday, the association submitted a form to the Senate Committee for Australia as a technology and financial center calling on the government to provide a safe haven for local cryptocurrency service providers.

By referring to a number of regulatory recommendations, Blockchain Australia highlighted the need for a coordinated and step-by-step approach to adopting a “fit for purpose regulatory framework”to ensure innovation and competition in the country while improving consumer outcomes.

Blockchain Australia is asking the state for a safe haven for cryptocurrencies
Blockchain Australia is asking the state for a safe haven for cryptocurrencies

Senator warns that a lack of regulations could hurt Australian crypto innovation

Proponents of cryptocurrencies stressed that the local industry “cannot afford to wait years for regulatory clarity” and that local consumers need the confidence to access regulated cryptocurrency services in the country., and specify:

“The government and the relevant regulators must provide crypto asset providers with a safe haven until they come up with guidelines or laws. All laws must contain a reasonable transition period and must not be applied retrospectively. “

As part of the recommendations, Blockchain Australia recommended the establishment of a regulatory working group that works across industries to enable better communication between the cryptocurrency industry and financial authorities. “The first exercise to be performed by the group should be a symbolic mapping exercise that examines the work being done in foreign jurisdictions.said the association.

The organization found collaboration with many Australian authorities, including the Australian Securities and Investments Commission (ASIC), the Australian Prudential Regulation Authority, the Reserve Bank of Australia, the Australian Competition and Consumers Commission, and the Australian Tax Office. Blockchain Australia has specifically asked ASIC to update the local escrow service regulation known as RG133 to explicitly state that licensed escrow providers can offer escrow services for crypto assets.

The news comes after local finance brokers raised further concerns about the Australian cryptocurrency industry.. In mid-July, the Australian stock exchange submitted a request to the Senate Committee on Financial Regulatory Technology warning of the security risks of holding cryptocurrencies on centralized cryptocurrency exchanges.

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