Australia’s Measured Approach to Crypto Regulation
Internal documents from the Australian Treasury Department reveal that the formulation of cryptocurrency legislation in the country might take at least a year, potentially extending beyond 2024. The government’s approach suggests a careful examination of the crypto industry, with consultation papers slated for release in Q2 2023 and stakeholder roundtables on crypto licensing and custody planned for Q3.
Obtained through freedom of information laws by the Australian Financial Review, the documents indicate that final submissions to the cabinet may not occur until late in the year, delaying potential decisions on cryptocurrency legislation until after 2024.
Consultation open! Today we released the token mapping consultation paper. This consultation is part of a multi step reform agenda to develop an appropriate regulatory setting for the #crypto sector. Read paper & submit views @ https://t.co/4W2msjhP9B @ASIC_Connect @AUSTRAC pic.twitter.com/OGHuZEGvDp
— Australian Treasury (@Treasury_AU) February 2, 2023
Acknowledging possible frustration among crypto businesses and consumer groups due to the extended timeline, the Treasury Department expects some stakeholders to be disappointed with the perceived delay in implementing a licensing regime, citing consumer groups seeking immediate protections and businesses seeking regulatory legitimacy.
Despite this, the Treasury Department believes that the demand for cryptocurrencies has weakened after the collapse of FTX, giving them additional time to develop regulatory frameworks. The documents mention the establishment of a specialized “crypto policy unit” within the Treasury department.
In November, the crypto policy unit discussed potential prerequisites for crypto licenses, including “fit and proper person” tests, meeting capital requirements, reporting fraudulent activities, and enhancing consumer safeguards. A survey by Australian crypto exchange Swyftx in September indicated that about one million Australians planned to buy cryptocurrency for the first time in the following year.
Conclusion:
As Australia takes a measured and methodical approach to establishing cryptocurrency legislation, the window remains open for individuals and businesses to position themselves ahead of the curve. While some may view delayed regulation as a setback, it also presents a unique opportunity for forward-thinking participants to strengthen their foundations in crypto mining, particularly through efficient and scalable strategies like ASIC mining.
For those exploring bitcoin mining in Australia, now is an ideal time to refine operations and build resilience before regulatory changes are fully enacted. Leveraging asic miner hosting ensures that miners can operate with professional oversight, optimised power usage, and secure infrastructure, reducing the complexities of managing hardware independently.
At Mining Store, we are committed to helping Australians take advantage of this transitional phase. Whether you’re new to mining or expanding an existing operation, our team offers tailored insights and technical expertise to support your success.
To better understand how ASIC mining and hosted solutions can align with your long-term goals, we invite you to book a 30 minute free consultation with our experts. Gain clarity, explore the best equipment options, and take actionable steps toward a stronger presence in the evolving Australian crypto landscape.
