Despite reports suggesting that 2 million pro-crypto voters could sway the result of the ongoing Australian Federal Election, the topic of cryptocurrency has been notably absent from the campaign discourse. Adrian Przelozny, founder of Independent Reserve, remarked on this oversight, stating, “I think it’s a missed opportunity. Neither side has made crypto a headline issue because they’re wary of polarizing voters or sounding too niche.”
However, there is a silver lining. After years of regulatory stagnation, both the ruling Australian Labor Party (ALP) and the opposition Liberal Party are now committing to develop crypto regulations in consultation with industry stakeholders.
In a recent address, Shadow Treasurer Angus Taylor announced that draft crypto regulations are set to be released within the first 100 days of a Liberal government, while the Treasury plans to unveil bills focused on digital asset platform regulations and payment system modernization this quarter.
Amy-Rose Goodey, CEO of the Digital Economy Council of Australia, noted that both major parties seem equally focused on advancing this draft legislation. She commented, “Irrespective of who gets in, we’re in a better position than we were about a year ago.”
Pro-crypto voters also have options in the Senate, with the Libertarian Party having introduced a 23-page Bitcoin policy in March that calls for a national Bitcoin Reserve and the acceptance of Bitcoin as legal tender. Meanwhile, the Greens party has yet to articulate a stance on cryptocurrency, while One Nation has campaigned against public sector debanking and central bank digital currencies (CBDCs).
More than a Decade of Stagnation
Australia embarked on its first parliamentary inquiry into digital assets back in 2014, but the journey towards substantial regulatory frameworks has been met with more than a decade of inaction, leading to a talent exodus towards more accommodating jurisdictions like Singapore and the UAE.
The previous Liberal Government attempted to introduce a landmark Digital Services Act based on recommendations from a 2021 Senate Committee but lost office before it could see fruition. Despite ongoing consultations, the current ALP government, led by Prime Minister Anthony Albanese, has not yet tabled any concrete legislation, as they adapt to a rapidly changing global landscape that demands crypto regulation. Recently, Treasurer Jim Chalmers emphasized the economic opportunities presented by digital assets, reaffirming the government’s intent to enable innovation while ensuring safe investment for Australians.
It is anticipated that exposure draft legislation will be released for consultation in 2025, after which further reforms would be gradually implemented to minimize disruptions to businesses.
While there’s now a growing urgency for action on crypto regulation, aided by public pressure and the awareness sparked by events like the FTX collapse, the ALP has faced criticism for its slow progress. Shadow assistant treasurer Luke Howarth pointed to the relatively recent acknowledgment of the need for regulation as a turning point.
Przelozny praised the Liberal Party’s commitment to unveil a regulatory framework within the first 100 days post-election as a necessary step forward.
The consultation process has led to drafting processes within the Treasury, indicating structural changes and prioritization, with reports suggesting that the digital asset team within the Treasury has significantly expanded over the past six months.
Focus on Urgent Action
Despite the promising developments in the regulatory landscape, industry leaders like John O’Loghlen, managing director at Coinbase for APAC, urge the winning party to establish a “Crypto-Asset Taskforce (CATF)” within the first 100 days to expedite regulatory processes. O’Loghlen has voiced concerns that delays could cause Australia to lag even further behind other nations in terms of crypto regulation.
The Australian Securities and Investments Commission (ASIC) has been mirroring the discussions surrounding regulatory reforms, releasing its own proposals for digital asset regulation last December, bringing closer alignment with global standards.
The Voting Dilemma for Crypto Supporters
A recent YouGov poll indicated that 59% of crypto users are inclined to back a pro-crypto candidate in the upcoming election, potentially influencing its outcome significantly. Goodey noted that the major parties generally align on key issues facing the crypto sector, which may leave voters with limited choices based on party lines alone.
Both major parties appear to be laying a foundation to establish a comprehensive regulatory framework, suggesting that 2025 could be a pivotal year for the Australian crypto landscape.
In conclusion, regardless of which party wins the election, Australia is poised to advance its cryptocurrency regulations significantly, offering a glimmer of hope to an industry that has faced prolonged uncertainty. As negotiations and drafting processes unfold, stakeholders remain cautiously optimistic about what 2025 has in store for Australia’s cryptocurrency future.
