According to internal documents from the Australian Treasury Department, the Australian government may not pass legislation related to cryptocurrencies until 2024 or later, as it wants to fully comprehend the market before taking any steps. This means the country may not have any crypto legislation for at least a year.
The Australian Labour government introduced the token mapping initiative three months after taking office last year. The initiative’s objective was to define the legal classification of different elements within the cryptocurrency ecosystem and determine the governing body responsible for regulating the industry.
The Australian crypto industry welcomed the initiative, and its official submission period was to end on March 3, 2023. However, the cabinet will not receive final proposals until the end of this year, potentially delaying any decisions on crypto legislation until at least 2024.
The government plans to release consultation papers on crypto licensing and custody in the second quarter of 2023, followed by stakeholder roundtables in the third quarter. The Australian Financial Review obtained documents detailing these plans through regulations governing access to public records.
According to the documents, the Treasury has a separate unit within the organization responsible for crypto policy, and Treasury expects some stakeholders to be “disappointed with the perceived delay in implementing a licensing regime.” For example, consumer groups who are seeking immediate protection and businesses seeking regulatory legitimacy.
The Treasury believes that the downfall of FTX has led to a significant decrease in cryptocurrency demand, which could provide additional time to develop regulations.
According to the Treasury’s briefing, current market conditions have resulted in a decline in consumer interest in crypto assets. Completing the token mapping exercise is necessary to clarify how a new licensing framework would operate in practice, which is expected to alleviate concerns.
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