{"id":255318,"date":"2021-05-21T08:49:34","date_gmt":"2021-05-21T05:49:34","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/senator-warns-lack-of-regulations-could-harm-australian-crypto-innovation\/"},"modified":"2021-05-21T08:49:34","modified_gmt":"2021-05-21T05:49:34","slug":"senator-warns-lack-of-regulations-could-harm-australian-crypto-innovation","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/senator-warns-lack-of-regulations-could-harm-australian-crypto-innovation\/","title":{"rendered":"#Senator warns lack of regulations could harm Australian crypto innovation"},"content":{"rendered":"

“#Senator warns lack of regulations could harm Australian crypto innovation<\/strong>”<\/p>\n

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                Australian senator Andrew Bragg has urged regulators to develop clear and comprehensive regulations to encourage innovation and ensure global competitiveness.\n                <p>Conservative Australian senator, Andrew Bragg, has asserted that Australia must introduce better regulations for crypto assets if the country is to \u201cstay ahead of the game<\/a>\u201d and foster innovation.\n<\/code><\/pre>\n
App<\/a>earing on Sky News<\/a>, the member of the ruling Liberal Party \u2014 who is chairing a senate inquiry into Bitcoin and other digital assets \u2014 stressed that crypto asset products have already proliferated, emphasizing the need for Australia to cultivate a positive business climate and offer consumer protections for the burgeoning industry.<\/p>\n
\u201cThe reality is these products are out there now, people are using them,\u201d he said. \u201cWe need to make sure that we have the right policy and regulatory environment to be able to maintain our competitive advantage, but also to protect consumers.\u201d<\/p>\n
\u201cPeople are using [digital assets] and we need to have a thorough review of it and see what sort of policy Australia wants to have if we want to be a tech and financial center.\u201d<\/p><\/blockquote>\n
The senate inquiry into digital assets that Bragg is chairing was announced earlier this week. A paper compiled on May 19 indicates<\/a> the committee will examine cryptocurrency policy in Australia with consideration of the regulatory approaches of the United States, Canada, the United Kingdom, and the EU.<\/p>\n
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The case for a regulatory framework. https:\/\/t.co\/s6BpVgLviY<\/a><\/p>\n
— Steve Vallas (@stevevallas) May 21, 2021<\/a><\/p><\/blockquote>\n
The paper warns that a failure to deliver comprehensive crypto regulations may drive investment offshore and undermine Australia\u2019s competitive standing within the industry:<\/p>\n
\u201cThe committee will be assessing options for the development of a comprehensive regulatory framework for cryptocurrency and digital assets. We want to know what type of policy provision and legal certainty is needed to drive private investment into Australian digital assets rather than the investment occurring offshore.\u201d<\/p><\/blockquote>\n
The inquiry will look into the alleged practice of \u201cde-banking\u201d \u2014 where traditional banks suspend services to fintech firms who compete with legacy financial institutions. Bragg attributed the reported prevalence of de-banking to a \u201clack of sophistication in Australia relative to comparable markets.\u201d<\/p>\n
Bragg noted it is in the interests of the traditional financial system to repress the growth of the cryptocurrency and digital asset industries, stating:<\/p>\n
\u201cThere is a strong vested interest in the banking and finance sector to keep the status quo in place where the banks and the public sector sort of, you know, run currency. And we need to interrogate that to make sure that that is the right thing for Australia, because when innovation happens, the solution is not to close the door on it.\u201d<\/p><\/blockquote>\n
In response to questions regarding if Bitcoin\u2019s price is vulnerable to manipulation, Bragg noted the committee\u2019s intention to be \u201cthoughtful and cautious,\u201d but emphasized the prevalence of \u201cunsavory\u201d practices in the traditional markets.<\/p>\n
\u201cEverything is open to market manipulation,\u201d he said. \u201cThere has been a lot of activity the banks have undertaken over the time as the custodians of the financial sector […] which has been unsavory.\u201d<\/p>\n