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Cryptocurrency has been met with a mixed reception around the world. In some places, it is encouraged and accepted as a legitimate currency, while in other countries, governments have taken a less welcoming stance. Australia is, like several other countries, somewhat divided on the issue of cryptocurrency.
Ben Rose, the General Manager of cryptocurrency exchange Binance Australia, recently discussed the subject at a meetup organized by Blockchain Australia, providing a perspective from the inside. Rose believes that regulation is necessary to promote innovation, but it should be balanced in order to foster growth.
Rose explained that the Australian Securities and Investments Commission (ASIC) has shown a great deal of understanding towards the new field of cryptocurrency, with its proactive approach to regulation. He also praised the government’s approach, as it created multiple bodies to help oversee the cryptocurrency sector, such as the Australian Transaction Reports and Analysis Centre (AUSTRAC).
However, he was also quick to point out the need for more informed decisions when it comes to regulating crypto. For one, Rose stated that not all assets classified as digital currencies or tokens should be regulated the same way. He believes that better differentiation among the different types of digital assets would help governments more easily pinpoint those that pose potential risks.
He also said that governments should look into regulations that drive innovation, rather than discouraging it. He further noted that there should also be regulations that ensure financial stability within the sector, while also preventing any potential issues.
Ultimately, Rose believes that the government will need to keep an open mind when it comes to the cryptocurrency world, if it wants to create a successful regulatory framework. He believes that the government should not take a “one size fits all” approach on the subject, but instead tailor the regulations to the specifics of the industry. By doing so, he believes that regulations will be better tailored to the needs of the sector, allowing it to thrive without any negative consequences.