- Financial Planning Association of Australia has shown interest in the crypto rule book.
- The Labor party has declared that the party’s main focus is increasing the protection laws in crypto.
- The second major point in the ALRC’s report was that introducing the Twin Peaks regulatory model is advisable.
The Statement by ALRC
Whenever we hear about cryptocurrency and its future, most people believe that this industry will grow only if rules and regulations back it. Recently FPA, short for Financial Planning Association of Australia, has shown interest in the ‘crypto rule book’ idea. The plan is to regulate crypto exchanges instead of regulating digital assets. The Australian Law Reform Council (ALRC) believes that the way to solve these issues is to lay out a rule book-style framework. This framework will help update compliance principles for the small-scale and local crypto firms to follow.
The treasury got notified by Ben Marshan. He also debated there should not be a separate legal framework for crypto regulations. He believes a better approach will make these regulations fall under the current services regime. Ben is FPA’s head of policy, strategy, and innovation.
The Twin Peaks Regulatory Model
The second major point in the ALRC’s report was that introducing the Twin Peaks regulatory model is advisable. This model is based on the system where the regulation is split between two entities: One of them focuses on overseeing and maintenance of the stability of the ecosystem. The second one is accountable for market behavior and consumer safety. The reason why ALRC believes in the credibility of this model is that the Australian financial regulatory system uses this model. The Australian Prudential Regulation Authority (APRA) is responsible for the ecosystem balance, while the Australian Securities and Investments Commission (ASIC) looks after the market responsibilities and consumer safety.
As we all know, the Labor party entered power in Australia after the Liberal party was voted out in May. This means that the crypto future of Australia is highly uncertain. As of now, the Labor party has not introduced any such motions. Meanwhile, they have declared that the party’s main focus is increasing the protection laws in crypto.
Source: https://www.thecoinrepublic.com/2022/07/16/the-australian-crypto-rule-book/