Custody remains one of the largest issues facing the growing number of crypto investors and businesses in Australia. The country is working to become a global leader for crypto exchanges and seek to protect the custody of crypto assets after the FTX collapse.
The Australian crypto market is now working to adopt new crypto rules and regulation for Aussies. The Australian financial authorities have initiated the talks with the cryptocurrency industry and aim to introduce rules for regulating exchanges next year after FTX Chapter 11 bankruptcy filing, last week.
The annual inflation rate in Australia rose to 7.3% in the third quarter (Q3) of this year from 6.1% in the second quarter (Q2.) Additionally, the IRCI report showed that 28.8% of Austrailians owned cryptocurrencies as of December 2021.
What Does The Australian Representative Say?
According to a report in the Australian Financial Review, a spokesman for Treasurer Jim Chalmers stated that “These developments highlight the lack of transparency and consumer protection in the crypto market, which is why our government is taking action to improve the regulatory frameworks while still promoting innovation.”
The spokesperson further said that “We are closely monitoring the fallout from the FTX collapse, including further volatility in crypto asset markets and any spillovers into financial markets more broadly.” Meanwhile, Legislation is expected to be introduced to parliament next year.
Kate Mulligan, Partner at Sydney Law firm, King Irving, said that “If we developed custody regulations by next year, we would be forerunners around the world. At the moment, it’s neck and neck between Singapore and Australia in Asia, and it would be great if Australia could be a place to foster this kind of business innovation.”
Furthermore, Caroline Bowler, Chief Executive Officer of Australian crypto exchange, BTC Markets Pty, told over the latest developments, “I was pleased because [the Australian blockchain industry] has been calling out for this for so long. It’s just unfortunate that it’s against the backdrop of the implosion [of FTX] and the other effects it’s had on Australian investors.”
Recent Crypto Adoption Update from Australia
The recent happening related to crypto adoption in the country, Australia Securities Exchange, ASX, has pulled the plug on a six-year project to move much of its workflow to a shared, distributed ledger similar to the blockchain. It resulted in a pre-tax charge of $165 Million to $171 Million in the first quarter of next year.
In early November, the leading crypto trading platform of Canada, Virgo entered the Australia market. Adam Cai, CEO of Virgo Group, said that “Virgo group fully trusts in the potential of Australian market and looks forward to this new chapter.”
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/11/18/australia-is-re-designing-crypto-rules-after-ftx-bankruptcy-filing/