With the surge of cryptocurrency, NSW Liberal Senator Andrew Bragg has commented that Australia “does not have a legitimate regulatory framework for blockchain” technology.
Blockchain technology has taken the world by storm. Australia has already indicated a desire to pursue certain crypto projects but has failed to prepare a proper policy framework. Without such guidance, many local businesses will be faced with uncertainty and may be forced to leave Australian soil. Many small start-ups have already made the move to countries such as Singapore, Germany, and the UK.
These start-ups have identified crypto’s real-world value, but many banks and financial institutions are finding it difficult to distinguish between legitimate and unlawful uses of cryptocurrency. This has resulted in banks steering clear of crypto due to fear of being unduly punished. However, by limiting the acceptance of cryptocurrency within Australia’s domestic market, Senator Bragg is worried that millions of investment dollars and highly paid professionals will be taken out of Australia’s economy.
Irrespective of the fears of banks or naysayers, the world is pushing for wider cryptocurrency adoption. With a market capitalisation of over $2.5T, cryptocurrency has proven that it is here to stay. Now the onus is on Australia to understand this technology and establish an effective regulatory framework to further the development of cryptocurrency and blockchain.