Having the introduction of the strict crypto regulations which are reported to mount during the coming 12 months, the Managing Director of Kraken Australia (Jonathon Miller) considers that a severe crypto era could block the native competition. The committee of Senate on Australia as a Technology and Financial Center, having Andrew Bragg (a crypto-friendly Senator) as its leader, specified 12 far-reaching recommendations regarding the regulations of the Fintech industry and digital assets in the recent month.
A new licensing era has been included in the proposal for the exchanges of cryptocurrencies, along with the latest laws to control the DAOs (decentralized autonomous organizations), as well as a renovation of the tax on the capital attained from the products dealing with DeFi (decentralized finance).
Miller, while appearing in an interview, stated that it remained to be witnessed whether the proposed regulations would put a positive or else negative impact on the native sector and its further advancement. He added that they had observed other markets having incorporating heavy regulatory pressure thus the competition between the exchanges collapsed, and now is the time for Australia. He expressed that he is optimistic that such a situation would not happen in Australia as it will considerably be bad for the customers in a long-term scenario.
According to the planned market licenses to be provided to the Australian DCE (digital currency exchanges), the native companies would require to fulfill severe auditing, responsibility, and capital adequacy requirements to acquire a license for the crypto operations. Miller talked about Japanese licensing requirements imposed by the government thereof and asserted that an extremely negative impact has been caused by them on the local consumer. Nonetheless, he clarified that Kraken (being among the handful of the crypto firms operating in Japan) has an active position in the market of Japan.
Nevertheless, BTC Markets’ CEO Caroline Bowler provided a diverse point of view by suggesting that the impending crypto era of Australia will enable and enhance innovation. Bowler considers that numerous progressive points have been included in the proposal. While discussing specifically DAO’s, some exclusively revolutionary advancements would be induced by the proposal irrespective of the country and jurisdiction in which it is being implemented.
She categorized the previous year’s crypto-centered regulation of Australia to be the single hindrance blocking the way of expansion chances regarding the products and services. Due to that framework, she further stated, the respective exchange could not provide the complete range of the intended opportunities.