Blockchain Australia Prescribes Safe Harbor Conditions for Cryptocurrency Providers

The regulatory framework in Australia for crypto falls short when it comes to derivatives trading. This is an opinion shared by a leading blockchain industry body based in the country. As such, Blockchain Australia (BA) proposes options to ensure effective regulation of the digital finance space.

BA responded to a request by the Australian senate select committee. The firm gave its advice on how to improve Australia’s standing as a “technology and financial” hub. With this, BA calls for a “systemized and graduated approach” to the management of digital assets across the country.

In line with this, BA gave several suggestions. These include immediate safe harbor provisions for crypto providers, more comprehensive regulation guidance, and engagement in the short term. Moreover, BA suggests overseeing the founding of a “fit for purpose legislative framework” in the long run.

Meanwhile, as suggested in the submission, a staged fit-for-purpose requires a well-thought-out and negotiated resource commitment.

Explaining further, the CEO of BA, Steve Vallas, stated,

The submission details the quickening pace of development across the world. The opportunity for Australia to lead a regulatory discussion will pass.

This is not the first time that BA has required clearer supervision. Back in February, the firm made suggestions to the same committee. Thus, they requested more support from the federal government and regulatory agencies to increase confidence in the country’s blockchain industry.

In addition, BA mentions that the first step is time. The firm notes that enough time should be given to crypto asset providers before introducing guidance and legislation. As reported in the papers, “Any legislation must include an appropriate transition period.”

The BA argues that the current regulatory framework in Australia is not inclusive. As such, continuous disclosure edicts regarding price-sensitive announcements, custody, clearing and settlement rules. And also, trading suspensions are not suitable for the crypto derivatives market.

Reacting to these submissions, the senate committee stated that they would be looking over more evidence. Then they would proceed to submit their final report with additional recommendations later during the year.