Australia’s crypto regulations could be delayed until 2024, details inside

• Crypto legislation in Australia could be delayed until 2024 or later as the government looks to get a full picture of the industry.
• Treasury expects that some stakeholders such as consumer groups will be disappointed by the perceived delay in implementing a licensing regime.

Crypto legislation in Australia could be delayed until 2024 or later as the government looks to take time to get a full picture of the industry.

The Australian Financial Review obtained internal government documents under freedom of information laws and disclosed said information.

The documents revealed that the government intends to release consultation papers in the second quarter of 2023 and to hold stakeholder roundtables on cryptocurrency licensing and custody in the third quarter.

The industry has been waiting for the next steps in the Australian Labor government’s token mapping exercise, which was announced three months after it took power last year and closed submissions on March 3.

Final cabinet submissions are not expected until late in the year, potentially pushing any decisions on crypto legislation well into 2024 and beyond.

According to a department briefing, the authorities expect irritation from crypto companies and consumer groups because of the long timeline.

Certain groups are sure to be disappointed

Treasury expects that some stakeholders will be disappointed by the perceived delay in implementing a licensing regime. Consumer groups looking for immediate protection and businesses looking for regulatory legitimacy will be disappointed.

The Treasury, on the other hand, believes that demand for cryptocurrencies in the wake of FTX’s collapse has weakened significantly, giving it more time to draft regulations.

The crypto policy unit reportedly flagged possible requirements for crypto licenses in a meeting with the finance ministry last November, including fit and proper person tests, capital requirements and obligations to report bad actors and fraud in the industry.

Meanwhile, documents show that the government has established a dedicated crypto policy unit in the finance department.

According to a Swyftx survey published last September, approximately one million Australians planned to buy cryptocurrency for the first time in the next 12 months, bringing total crypto ownership in the country to more than five million.