Jim Chalmers, a spokeswoman for the Australian Treasurer, reportedly discussed the Treasury’s proposals for rules regarding investors’ protection.
Following the collapse of the FTX the previous week, the Australian government is reportedly redoubling its efforts to put in place a legal framework for cryptocurrencies, according to Cointelegraph.
Jim Chalmers, the Australian Treasurer’s spokeswoman, reportedly discussed the Treasury’s intentions for legislation relating to investors’ safety next year, as noted by an article from the AFR published on November 16, 2022, according to Cointelegraph. The spokesman specifically mentioned the effects of the FTX collapse, “including future volatility in crypto-asset markets and possible spillovers into financial markets more generally,” in the announcement regarding the collapse of FTX the previous week.
The government is acting to strengthen the legal frameworks while still encouraging innovation since “these developments underscore the lack of transparency and consumer protection in the crypto industry,” Chalmers added.
According to Cointelegraph’s sources, 30,000 Australians and 132 firms have suffered as a result of Sam Bankman-FTX Fried’s failure, which is why fast-tracked rules are necessary.
While the law cannot totally prohibit misconduct, it may set strict rules and standards that make it easier to recognize it. “Regulatory certainty is vital to restore credibility in centralized exchanges. The difficulty, according to Michael Bacina, digital asset manager at Piper Alderman attorneys, will be making sure that regulations function as intended to successfully safeguard consumers without stifling industry growth.
Cointelegraph also stated that Danny Talwar, head of cryptocurrency taxation platform Koinly Australia, emphasized the compliance of Australian trading platforms with the Australian Transaction Reports and Analysis Centre as well as suggestions made for the establishment of a market licensing framework.
“Depending on how quickly other jurisdictions, like Singapore and Europe, move to develop laws, we will either be a pioneer in the industry or catching up when Australia brings in technology-enabling custody rules for centralized holders of crypto-assets,” Bacina said.
