thecoinrepublic.com
- Treasurer Josh Frydenberg’s plans for crypto regulation have created a “weird limbo state,” according to TCM Capital’s Fred Pucci.
- People in the age bracket of 24-34 years are more supportive of crypto in Australia, 27.6 percent of them claimed that they invest in it to become rich, although people above the age of 65 years are still skeptical regarding crypto.
- According to the research by the digital payment giant, it is highly probable that one in three Australian crypto investors will change their primary bank to one which also renders crypto products in the next 12 months.
According to an expert in risk and compliance, it is highly probable that cryptocurrency can be an election issue for millennials.
Australians depend on the crypto market to buy a house or for other purposes; however, without the benefit of any safeguards, says TCM Capital’s Fred Pucci.
According to Pucci, “Some millennials are taking it to the extreme and putting all bets on,” adding he said, “For the Liberals to have a policy that is going to help that market develop and be sustained with more of an Australian presence, and more Australian protections for crypto investors, is going to be an attractive thing.”
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He also thinks that a “weird limbo state” is created because of Treasurer Josh Frydenberg’s plans for crypto regulation.
The overhaul also includes asset custody rules and a licensing regime for crypto exchange. It heavily draws on the recommendation of a Senate inquiry chaired by Andrew Bragg, a fintech enthusiast.
Mr. Pucci explains, “If you look at the fine print of Treasurer Frydenberg’s document, the timetable for the key planks of this are not going to come through, assuming they win the election and parliament passes the legislation, until mid to late-2022,”
Chloe White, managing director at Genesis Block, has also been a former federal insider and has guided policy thinking on crypto currency and blockchain.
White says, “Like the rest of the digital currency sector, we’re very pleased to see the government taking the industry seriously,”
“The Senate inquiry was a bipartisan activity, and it would be great to see the opposition engage with the recommendations of the report to provide the certainty that the industry needs to make decisions about crypto investment and hiring over the next year,” she added.
Labor has also declined a policy update.
Ms. White says, “On the technology side, we’re very excited about the next 12 months”.
There is a flurry of opportunities ranging from renewable Fintech to Bitcoin Farms and everything in between.
Agreeing, Mr. Pucci said, if Labor doesn’t engage, it would be a missed opportunity, with Australians involved in the market being anxious with the silence.
He also says Senator Bragg has been directly involved during the 2021 inquiry to understand how the infrastructure works, including blockchain technology, the custodians, and the exchanges.
Ms. White says the industry would be excited to see policy introduced rapidly; however, it was essential to get things right.
She also explains, “Policy that is rushed and poorly designed can backfire, as we saw in the case of the New York BitLicense,”
The strict New York regime has set trading limits on state residents, and capital and costly licenses are needed as prerequisites that most startups can’t afford.
She says, “There’s one more thing we expect to see in the next year, and that’s more big-name investors like Carnegie choosing to take jobs and companies to crypto-friendly jurisdictions,”
Competitive Areas are already attracting talent and transactions of Australia, which also includes Reserve exchange that was matured and licensed this year by the Monetary Authority of Singapore.
A regulatory sandbox has been created by the city-state for over 200 startups to play in while authorities keep it under surveillance.
Mr. Pucci says, “They’ve only given two or three actual licences,”
“They’re screening very carefully, but they’ve got one eye on it under this exemption regime.”
“You’re under probation, you’re under watch.”
According to an annual survey by an independent reserve, 28.6 percent of Australians who do not yet have any crypto-asset say they would invest in it if there were better consumer protection.
Bitcoin holds its position as a popular and well-known cryptocurrency in Australia also, staying ahead of Ethereum.
While people above the age of 65 remain skeptical, the age bracket of 24-34 years is more trusting of crypto, with 27.6 percent claiming they bought it to get rich.
Anthony Jones, a Visa spokesman, says financial institutions will need a strategy for crypto as Australians are evolving in their thoughts regarding money.
According to research by the digital payments giant, one in three Australian crypto-owners claim that they will be changing their primary bank to one that is offering crypto products in the next 12 months.
Among crypto-asset owners, the most significant drivers are there to build wealth(40 percent), fear of missing out on gains (28 percent), and to take part in the “financial way of the future” (34 percent)
However, it’s not what it looks like.
Almost half of the investments reported to Scamwatch involve cryptocurrencies, informs The Australian Competition and Consumer Commission to AAP.
Scamwatch received 8942 reports of investment scams with over $150.4 million in losses from January to November in 2021. The tally is expected to reach $164 million by the end of the year.
They advise investing only as much as one can afford to lose.
Often scammers attract investors with low initial investment but then utilize high-pressure strategies to encourage clients to invest more.
An ACCC spokeswoman says, “While there are fake crypto exchanges, scammers do use legitimate sites to scam people, such as asking them to pay by Bitcoin, so we generally urge people to exercise caution when using non-traditional payment methods,”
In the end, she suggested that it’s better to always seek advice from a licensed financial advisor before making an investment decision.