The Australia Securities and Investments Commission (ASIC) is now urging local blockchain and crypto companies to engage with the regulators to help them enhance innovation in the region. ASIC wants the crypto companies to work closely with it, but the sector’s executives are not sure of the regulator’s obligations.
While speaking at the Australia Blockchain conference on April 19, 2021, Jonathan Hatch, the senior advisor of strategic intelligence at ASIC, insisted that the regulator is trying to create some trust and collaboration with the crypto space.
The CIO of Monochrome Asset Management, Panelist Kevin Saunders, said that while the blockchain industry could do a bit more to understand the ASIC regulatory infrastructure, the commission requires to offer more clarification on the sector’s compliance obligations.
Saunders aimed at the opacity of existing regulations, characterizing the sector’s oversight as “too ephemeral for large institutions to engage with it”.
Chloe White, National Blockchain Roadmap Lead, while commenting on the issues affecting the sector, agreed that it is quite challenging for the sector’s stakeholders to keep up with the current regulatory space.
The CEO of digital financial agreement firm Lygon 1B, Justin Amos, said that the regulators have to collaborate to support new technologies, instead of seeking to stifle emerging industries with restrictive regulation.
Australia’s government has already been supporting the blockchain projects, having made two grants of $3 million available to the blockchain teams that target minerals certification and excise taxation solutions in late March.
In November last year, the Reserve Bank of Australia (RBA) unveiled partnerships with the National Australia Bank, Commonwealth Bank, Ethereum software firm ConsenSys, and financial services company Perpetual to explore the possible use of a general central bank digital currency (CBDC).
In January this year, reports emerged that Australia would be one of the first five nations to launch a CBDC due to its favorable blockchain environment.