The new CEO of Blockchain Australia recently urged the Australian government to refrain from following the United States footsteps in regulating the crypto industry. Furthermore, he condemned the regulation by enforcement practiced by American regulators.
According to reports, Blockchain Australia, the most prominent crypto firm in the country, recently announced a new CEO, Simon Callaghan, who aims to speed up the creation of a progressive crypto regulatory framework in the country.
Callaghan, who just assumed the post, has advised Australia’s federal government to resist the urge to take hints from the American crypto regulatory approach. Instead, he urged them to model the likes of Hong Kong and the UK.
The new CEO is reportedly seeking to drive crypto rule-making in Australia, steering clear of moves similar to that of the US SEC (Securities and Exchange Commission). According to reports, the US SEC recently filed a lawsuit against Binance.US and Coinbase exchanges, branding about 68 cryptos as securities.
Callaghan thinks the regulation-by-enforcement approach the US SEC is applying is similar to tagging everything as a nail while holding a hammer. He claimed that the process was not suitable for the Australian market.
Australian Govt. Approaches Crypto Regulation Carefully
Simon Callaghan was announced as the Chief executive officer of Blockchain Australia on June 26, after the post was vacated by Laura Mercurio, who briefly stepped in as an interim CEO when the former CEO Steve Vallas departed the firm in July 2022.
In his new post, the CEO would be the legal representation of all crypto firms clamoring for a more precise crypto regulatory framework, including companies like Circle, Mastercard, Binance Australia, and Ripple.
While speaking at a recently concluded Blockchain Week seminar, Callaghan stated that everyone desires to know where the goalposts are so they can focus their businesses there and establish their tech hubs, creating more job opportunities.
At the moment, the Australian government is yet to take any stance on the crypto industry, according to the CEO. In addition, he stated that the Australian Treasury Department plans to deploy a token mapping test soon.
The test would help the administration to effectively group digital assets into securities or commodities. By doing so, it would be easier to set regulations to guild the conduct of the two categories. Callaghan expected the rules to come up next year.
The CEO suggested that the current administration is taking time to carefully consider the right approach to regulating the crypto industry. He commended that the decision of the authorities is arguably good.
Callaghan Urged Australia To Emulate Crypto-Friendly Countries
Furthermore, he urged Australian policymakers to emulate the crypto regulatory approach of crypto-friendly countries like the UK, Singapore, and Hong Kong. These countries are reportedly creating protocols that target striking a balance between innovation and customers’ protection.
Also, they understood the potential benefits the rapidly-growing crypto industry could offer the financial, technological, educational sectors and others. Hence, they are already taking the position to milk the opportunities.
Recently, the central bank of Hong Kong mounted pressure on traditional banks to start embracing cryptocurrency exchanges as customers as the city move to create a global crypto hub, enticing more offshore investments and firms.
Meanwhile, in 2021, a senate panel in Australia suggested that cryptocurrency companies should have the right to confront debanking decisions from local banks. It added that local banks should investigate and conduct due diligence on suspicious crypto companies before mindlessly placing bans on them.
Nonetheless, two major banks in the country reportedly placed limits, hold, and instant blockade on some transactions to local cryptocurrency platforms recently. The duo claimed their actions were to prevent being victims of the rampant financial crimes in the crypto industry.
Commenting, Callaghan criticized the act of condemning every crypto-related project as a scam. He said data needs to be probed before taking action. Furthermore, the CEO reportedly said he is currently scheduling a meeting with the two banks to know their reasons further.