Australia's Crypto Industry Grapples with Uncertain Regulatory Framework
- 王林Original
- 2024-09-12 12:05:121040browse
Australia has the third-highest rate of crypto adoption in the world with an influx of products such as Bitcoin ATMs. However, crypto exchanges and operators are concerned about the Australian regulators' laws.
Major crypto exchange Kraken has highlighted the need for clear crypto regulations in Australia after a recent court ruling impacted their fiat margin trading service.
The exchange was sued by the Australian Securities and Investments Commission (ASIC) over its Margin Extension product, which allowed users to trade cryptocurrencies with up to 5x leverage.
The Federal Court ruled in favor of ASIC, ordering Kraken to stop offering fiat margin trading to retail investors in Australia. The product is now only available to “wholesale investors,” as defined by the Corporations Act.
“We believe the Court’s decision was a win for those of us that are advocating for new laws to govern crypto… The judgment highlighted, and clearly affirmed, that the existing Australian law is not effective at regulating crypto,” Kraken said in a statement.
Kraken added that the court’s decision “underscores the urgent need for a licensing regime and bespoke crypto laws.”
The exchange also noted that the current legislation is “deeply unsatisfactory” and has made it difficult for them to continue offering fiat margin trading.
“We are committed to reintroducing fiat Margin Extension in the coming months, ensuring we fully comply with the existing regulations. At present, the fiat Margin Extension service is only available to high-net-worth individuals, professional investors, or large corporations, as defined by the Corporations Act,” Kraken said.
The development comes as the Australian crypto industry continues to face a lack of clarity and delays in crypto regulation.
The Australian Government announced plans to introduce a licensing regime for crypto exchanges and stablecoin issuers in December 2022. The draft Bill was expected to be introduced in Parliament by the end of March.
However, the Bill’s final approval and implementation are now not expected until 2025, according to a recent report by the Australian Financial Review.
The delay has raised concerns among crypto businesses and investors, who have been eagerly awaiting clear regulations for the industry.
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