Australia could become crypto hub

AUSTRALIA has the potential to become a global cryptocurrency powerhouse that would see billions of dollars passing through our shores, according to parliament’s first investigation into the new payment technology.

Having taken what committee chair Andrew Bragg called a “six-month deep dive” into cryptocurrency, the Senate’s Select Committee on Australia as a Technology and Financial Centre handed down its report on Wednesday night

“We want people to have the ability to use cryptocurrency because it gives them more agency and more choice,” Senator Bragg said.

“It disrupts big players, and has been hugely successful in upending things like international payments.

“If we follow the recommendations of this report, we have the potential to be a crypto leader like Singapore and the UK.”

The report cited a number of cryptocurrency brokerages that found the reaction of banks was harming their ability to do business in Australia.

“The unwillingness of traditional banks to facilitate digital asset businesses by refusing to do business with them has introduced an unnecessary and significant risk to both the growth and innovation of the digital asset businesses and also to Australian consumers,” said Swyftx, a local crypto dealer, in a submission.

Among the recommendations of the committee are that Australia establish bankingstyle rules around capital adequacy and auditing, that antimoney laundering and counter-terrorism financing regulations be clarified to better account for crypto, and that better rights be given to those who have been “de-banked”, or seen their accounts closed because of crypto activity.

“We are calling for a new system of regulation and giving people the right of appeal through the Australian Financial Complaints Authority,” Senator Bragg said.