Crypto Has Become Too Important For The Government To Ignore

This committee wants the government to put an end to this rejection of the regulations and wants all the space to disappear. It’s too big for that now. But by unloading recommendations to lift consumer protections, he tried to satisfy the innovators developing on public blockchains, which are true global networks.

The 150 pages Australia as a technological and financial center (ATFC) goes much further than the popular fascination with bitcoin and its daily price movements, or the craze for NFT which sees certain crypto assets reaching sky-high heights. The committee sees decentralized technologies triggering a wave of new services, including more transparent business models running on Ethereum, and suggests it would be better for Australia to embrace rather than avoid what’s coming.

Many in this scene will laugh

It’s not just the $ 135 billion DeFi market, but the foundations of a whole new digital economy, from internet search and gaming to new models of social media and computer storage where more benefits are distributed to users rather than centralized tech giants. If Web 3.0 emerges, the report suggests that it would be prudent for Australia to be at the table, developing new skills in the country and supporting the creation of these new businesses, rather than watching the loot go. elsewhere.

Of course, many in this scene will scoff at the idea of ​​regulation and control. The diehards will want nothing to do with the traditional “rails” of the financial system. He has rebel and protest roots. In addition, “decentralized autonomous organizations” live on the Internet; local rules are difficult to implement in practice.

But this survey made it clear that despite the challenges, Australian company law is not fit for the digital future.

Banks are likely to publicly welcome unregulated players into the regulatory net. Banks like a level playing field. But privately, bankers worry about disintermediation by financial services delivered by automated computer protocols.

While bitcoin has shown that a monetary system can be created outside of banking, apps like Synthetix, TracerDAO, prePO, Chainflip, THORChain, mStable, dHedge, Ren Protocol, Maple Finance, Immutable, Zora, and Illivium – which all have Australian connections – show how the bank could be very different in the future.

It’s a world this committee wants regulators and the Treasury to prepare for. He wants Canberra to set the direction for policy, encouraging entrepreneurs and new players while ensuring that the minimum level of investor protection is improved.

Of course, crypto creates a lot of new risks. A lack of “security” protections will make some developers nervous. Upgrading the bureaucracy will be a big challenge. This whole space is changing so quickly that any new law must make sure it is not obsolete before it comes into force. No jurisdiction in the world has the right crypto regulations.

But at the heart of this report is a greater risk: that of doing nothing.