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  • J Markezic and M Bacina

New Labor Government urged to regulate crypto the right way

Australian cryptocurrency industry leaders have urged the newly elected Labor government to continue the course for crypto regulation spearheaded by the previous Coalition government. The advice notes that Labor had supported the draft regulations while in opposition and highlighted the concern from Web3 industry that the country cannot be allowed to fall behind on key reforms.

Steve Vallas - the head of Australia's leading industry association, Blockchain Australia - noted that significant changes were not expected under the new government:

We’re moving in the same direction... [t]he issue important to Labor is on consumer protections and concerns about things like scams, and how they impact retail investors. So, we expect that to be more front and centre in the next little while.

Prior to the election, the then financial services spokesperson for the Labor party - Stephen Jones - outlined that, if elected, a Labor government would consider crypto regulation as one aspect of a suite of framework changes to the digital payment system.

Independent Reserve's chief executive, Adrian Przelozny, did not consider crypto reform to be a policy priority for the new Labor government, but noted that the industry was confident Labor would continue the momentum gathered by the Senate Inquiry into Australia as a Technology and Financial Centre, spearheaded by Liberal senator, Andrew Bragg. Przelozny said:

There’s a consultation paper out right now which outlines proposed regulation, so we hope the government takes that on board, and we hope they don’t try to mess with all the work that’s already happened in consultation with the industry...

It remains to be seen whether the new Labor government will stay the course already set out on. What remains clear, however, is that industry is avidly looking forward to working with government to protect investors and incentivising innovation in the sector.

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