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Does Australia need to regulate the cryptocurrency market?
Australia needs to set up its own regulatory oversight of the domestic digital asset market or risk being left behind by the rest of the world, a cryptocurrency specialist has warned.
Does Australia need to regulate the cryptocurrency market?
Australia needs to set up its own regulatory oversight of the domestic digital asset market or risk being left behind by the rest of the world, a cryptocurrency specialist has warned.
With the growing popularity and a surge in price for crypto assets, including bitcoin, BTC Markets is warning that there are gaps in Australia’s regulation relating to digital financial productions and exchanges that support them.
Bitcoin has soared back after losing ground earlier this week, climbing over US$60,000 ($71,000).
The bitcoin price hit an all-time high of around US$62,000 per bitcoin earlier this month but has fallen back over recent weeks.
Despite the setback, bitcoin has more than doubled in value since the beginning of the year.
BTC Markets CEO Caroline Bowler said digital finance is growing rapidly and that our country needs to keep pace with the change, with legislation tailored to technological advances.
“Australia needs to prepare for the future of finance. We believe prioritising digital financial legislation will have a significant longer-term impact across our entire economy,” Ms Bowler said.
“With the COVID-19 pandemic accelerating the move to digital, technology needs to be viewed as a driver of future jobs and economic growth to ensure Australia remains globally competitive.
She said that while the technology and ideology that underlines bitcoin and other cryptocurrencies has been difficult for traditional markets to accept, large institutions are now joining, with it becoming an advantage for Australia to be a leader in the digital space.
“As a nation, we are setting international standards for blockchain use. But we need to use this clear advantage to get on the front foot to prepare our economy for what is to come,” she added.
Overseas success
According to Ms Bowler, other countries are successfully pulling ahead by regulating their cryptocurrency market, which is driving local company founders to list their companies overseas.
She points to various successful schemes in Hong Kong, Singapore, the United States and European Commission, including security token offerings (STO’s) which are helping better capital raise for younger companies.
“We have firsthand experience of private equity, venture capital firms and investment banks looking to float innovative Australian companies via STOs but are hamstrung by a lack of local market infrastructure, inhibited by a regulatory framework shaped for traditional markets,” she said.
“This approach locks out much-needed capital raising for Australian innovators and entrepreneurs and closes the door for local investors to access good quality investment opportunities. With recent advances overseas, such companies are looking for opportunities elsewhere in Asia Pacific.”
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