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The Select Committee on Australia as a Technology and Financial Centre, the panel in charge of reviewing the use of digital assets in Australia, believes the country needs a robust policy and regulatory framework to foster crypto adoption.
A report disclosed this news earlier today, noting that the committee believes the crypto space is one of the fastest-growing areas of finance.
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According to the report, the committee published a draft that comprises measures to enable Australia to effectively dips toes in the crypto space.
Per the committee, a regulatory framework would protect consumers, foster investment, enhance market competition, and position Australia as a jurisdiction in which innovation can thrive.
Andrew Bragg, a Senator from the conservative Liberal Party and the Chair of the Committee, further noted that a crypto regulatory framework would help Australia compete with global financial hubs like Singapore and the UK.
Senator Bragg also hopes that the framework will cripple de-banking, a practice that involves lenders closing the accounts of clients deemed to be high-risk. According to him, this practice is killing too many small businesses in Australia, thus stifling growth.
Moving fast to foster growth
Reportedly, the draft put forward three recommendations, which Bragg said he wants the governing coalition to embrace in the coming months. In so doing, he expects that the recommendations pass into law after the Federal election, which is set to take place early next year.
The Select Committee on Australia as a Technology and Financial Centre’s first recommendation is that the government should establish a market licensing regime for digital currency exchanges.
Per the panel, the licensing regime should comprise measures such as checking capital adequacy, audits, and conducting responsible person tests under the Treasury portfolio.
Additionally, the committee suggested that the government create a custody or depository regime for digital assets with minimal standards under the Treasury portfolio.
On top of this, the committee proposed that the government conduct a token mapping exercise. According to the panel, this step would help determine the best way to categorize different digital assets in Australia.
Australia’s push for a crypto regulatory framework comes as the crypto market rallies. This rally has seen the market’s capitalization surge to $2.62 trillion (£1.90). Bitcoin (BTC/USD), the largest crypto by market capitalization, is leading this rally after gaining 6.32% in 24 hours to change hands at $66,477.74 (£48,097.64). These gains have also seen BTC set a new all-time high at $66,930.39 (£48,425.14).