Crypto Regulation Promises Made by Both Major Parties in Australia

Despite the potential influence of 2 million pro-crypto voters on the outcome of the Australian Federal Election, the issue of cryptocurrency has received minimal attention during the campaign. Adrian Przelozny, the founder of Independent Reserve, noted that neither the ruling Australian Labor Party (ALP) nor the opposition Liberal Party has made crypto a headline issue, likely due to concerns about polarizing voters or appearing too niche.

However, both major parties have pledged to enact crypto regulations developed in consultation with the industry. In April, Shadow Treasurer Angus Taylor promised to release draft crypto regulations within the first 100 days after taking office. The Treasury itself has draft bills on “regulating digital asset platforms” and “payments system modernization” scheduled for release this quarter. Amy-Rose Goodey, CEO of the Digital Economy Council of Australia, stated that both parties are equally invested in getting this draft legislation across the line, positioning Australia in a better regulatory stance than a year ago.

Pro-crypto voters also have choices in the Senate, with the Libertarian Party issuing a 23-page Bitcoin policy in March. This policy calls for the creation of a national Bitcoin Reserve and the acceptance of Bitcoin as legal tender. The Libertarian Party is fielding five Senate candidates in different states, including former Liberal MP Craig Kelly, although they currently do not have any representation in the Senate. the progressive left-wing Greens party has not outlined a position on crypto, while the conservative right-wing One Nation party has campaigned against debanking and Central Bank Digital Currencies (CBDCs).

Australia’s first parliamentary inquiry into digital assets was held back in 2014, but there has been more than a decade of regulatory inaction since. This stagnation has led to a brain drain of talent to jurisdictions like Singapore and the UAE. The former Liberal Government was considering the landmark Digital Services Act, based on the 2021 Senate Committee’s crypto recommendations, when it lost office in 2022. Despite ongoing consultations since, the ALP government, led by Prime Minister Anthony Albanese, hasn’t put forward any legislation to parliament. However, there has been a recent shift in the ALP’s stance, with Treasurer Jim Chalmers acknowledging the opportunities digital assets present for the economy. His office indicated that exposure draft legislation would be released “in 2025” for consultation, with subsequent reforms phased in over time to minimize disruptions to existing businesses.

The shadow assistant treasurer, Luke Howarth, criticized the ALP for being slow to act, stating that it wasn’t until the FTX collapse that they acknowledged the need for regulation. He highlighted that the opposition has committed to a faster time frame for implementing crypto regulations. Przelozny praised the 100-day promise as “exactly the kind of urgency we need.” If elected, the Liberal Party’s legislation is expected to take cues from Senator Andrew Bragg’s private members bill in 2023 and the more recent work done by the Treasury.

The Treasury has been quietly drafting legislation this year, which Goodey understands is “almost complete.” Przelozny characterized the ALP’s approach as “cautious and methodical, but it’s been slow,” prioritizing consumer protection and risk management. BTC Markets CEO Caroline Bowler suggested that the election of a pro-crypto administration and the UK’s draft regulations likely forced both sides of politics to finally get serious about crypto regulation. Australia has ground to make up, and both parties are now moving to address this.

The Stand With Crypto campaign is active in Australia but has been fairly low-key during the campaign, focusing on debanking. Coinbase managing director for APAC John O’Loghlen called on whoever wins the election to launch a “Crypto-Asset Taskforce (CATF) within the first 100 days.” This taskforce would include industry and consumer representatives to finally get crypto regulations over the line. O’Loghlen emphasized that if Australia doesn’t move now, it risks falling even further behind.

The Australian Securities and Investments Commission (ASIC) released its own crypto regulatory proposals in December. Joy Lam, Binance’s head of global regulatory and APAC legal, does not expect ASIC to suddenly change direction if a new government comes in, as the SEC did. She noted that ASIC operates within the legislative framework set by the government and does not make the law itself.

In February, a poll found that 59% of crypto users would vote for a pro-crypto candidate in the federal election above all other issues. This equates to around 2 million Australians and would be enough to determine the outcome of the election. However, the similarities between the major parties on crypto regulation are much greater than the differences. Goodey noted that both sides of politics have genuinely engaged with the industry about its concerns and priorities. Recent polls suggest the government is likely to be reelected, but whatever happens, 2025 looks like the year Australia will finally provide the crypto industry with the certainty it needs. Lam expressed cautious optimism about the future of crypto regulation in Australia.