Blockchain Australia calls on the state to establish a crypto safe harbor

Blockchain Australia, a major association representing the local cryptocurrency industry, has formally submitted its crypto regulatory recommendations to the federal government.

The association Archive A document submitted to the Senate Special Committee on Australia as a technology and financial center last Friday called on the government to provide a safe haven for local encryption service providers.

Blockchain Australia pointed out a series of regulatory recommendations, emphasizing the need to adopt a coordinated and progressive approach to adopt a “purpose-fit regulatory framework” to ensure innovation and competition in the country, while improving consumer outcomes.

Encryption advocates emphasized that the local industry “cannot explicitly wait for several years for regulation” and that local consumers need to have the confidence to access regulated encryption services in the country, stating:

“The government and relevant regulatory agencies should provide a safe haven for crypto asset providers until they issue guidance or legislation. Any legislation should include an appropriate transition period and cannot be applied retrospectively.”

As part of the recommendations, Blockchain Australia proposes to establish a cross-industry supervisory working group to promote more communication between the crypto industry and financial authorities. The association pointed out: “The first work carried out by the team should be the token mapping work to check the work done in overseas jurisdictions.”

related: Senator warns that lack of regulation could harm Australia’s crypto innovation

The organization points to cooperation with many Australian authorities, including the Australian Securities and Investments Commission (ASIC), the Australian Prudential Regulation Authority, the Reserve Bank of Australia, the Australian Competition and Consumer Commission, and the Australian Taxation Office. Blockchain Australia specifically requires ASIC to update the local custody service regulations called RG133 to clearly stipulate that licensed custody service providers can provide encrypted asset custody services.

The news was released after local financial players expressed more concerns about Australia’s cryptocurrency industry. In mid-July, the Australian Stock Exchange Submitted a submission The Senate Committee on Financial Supervision Technology issued a warning on the security risks of encrypted custody of centralized crypto exchanges.