The Australian Financial Planning Association (FPA) supports the idea of the “Cryptocurrency Rulebook” and calls for the regulation of exchanges on behalf of crypto assets.
In May, the Australian Law Amendment Council (ALRC) proposed working on crypto regulations through a rulebook-style framework that sets out a series of step-by-step, updated compliance principles for local crypto companies to comply. ..
Comments came through a submission to the Treasury by Ben Marshan, Head of Policy, Strategy and Innovation at FPA. Ben Marshan also argued that the regulation of crypto exchange should apply to the current financial services system, not to the new separate legal framework.
“First, it will create alternative overlapping regulatory regimes to regulate those centered on the purchase and holding of financial assets for either individual or wholesale investors.”
“Second, existing financial services licensees need to apply for and retain another type of license, increasing cost and regulatory duplication,” he added.
Mashan also emphasized the need to deploy stronger consumer protection for Australian local crypto users, and regulating secondary providers (crypto exchanges, brokers, etc.) is the best way to do this. I emphasized that there is.
“Regulation of financial products and services should not depend on the technology underlying the asset,” he said. “Because the products are highly decentralized and in foreign jurisdictions of all kinds, they are regulated. It’s virtually impossible to do. “
Mashan argues that centralizing regulation to crypto service providers removes a lot of “complexity” from the equation given the rapidly evolving nature of blockchain technology and crypto, and the ALRC that companies should follow. He added that the idea of the crypto rulebook “makes sense”.
“Instead of working over thousands of pages of corporate law, people can go to specific sections, which is much more efficient and therefore much easier.”
Talking to Cointelegraph, Ryan Parsons, Co-CEO of Local Cryptographic Exchange Swyftx, Repeating calls from Mashan, his company hopes that “wise measures to support consumer protection” will be enacted soon so that Australia does not run the risk of lagging behind the United States and the European Union. He said he was.
“Our preference is to have the crypto platform work within the existing financial services licensing framework, although it is a way to explain the unique characteristics of digital assets.”
“I think this is the best way to reduce complexity and cost and build confidence in crypto as an asset class among Australian investors,” he added.
Another important idea highlighted in the ALRC report was the introduction of the Twin Peaks regulatory model. In this model, regulation is responsible for overseeing the stability of the financial system and is divided into the entities responsible for the organization’s market behavior and consumer protection.
The same model is used in Australia’s financial regulatory system, with the Australian Securities and Investment Commission (ASIC) responsible for good market behavior and consumer protection, and the Australian Prudential Regulation Authority (APRA) for financial system stability. I am in charge.
Australia’s cryptocurrency regulations have become uncertain as the Labor Party since the Liberal Party was categorically expelled from the government in May. There seems to be other fish to fry..
Currently, Labor has not yet provided a concrete initiative, Better consumer protection The focus on cryptocurrencies is an important area.