Senators Bragg and Lummis discuss crypto laws collaboration between US, Australia

April 29, 2022 Coin Telegraph

“We want to be close to our friends in the United States on these issues as much as we can,” Australian Senator Andrew Bragg told Cointelegraph.

Australian Senator Andrew Bragg hasmet with U.S. Senator Cynthia Lummis to discuss potential collaboration on cryptocurrency regulation between the two countries.

Senator Bragg is a crypto-friendly politician from the ruling Liberal Party (a conservative center right party) that has been one of the driving forces behind a proposed forward-thinking regulatory scheme in Australia.

Last year he fronted the Senate Committee on Australia as a Technology and Financial Center (ATFC) which tabled 12 extensive regulatory proposals relating to taxation, decentralized autonomous organizations (DAOs) and company licensing. Two months later, Treasurer Josh Frydenburg outlined intentions to begin implementing at least six of the proposals by mid-2022.

Since then the proposals have been refined and packaged into the Digital Services Act, however, its implementation is up in the air. With the federal election set to take place next month, it is unclear if the act will be adopted if the opposition Labor party is voted in, given it is yet to provide a concrete stance on the crypto sector.

Bragg spoke with Lummis — who is a known crypto proponent and Bitcoin (BTC) hodler — via a video call this week, and told Cointelegraph that the discussion focused mainly on the “opportunities for regulatory equivalents.”

Thanks for the great visit! https://t.co/3tqrwhAj0v
— Cynthia Lummis (@CynthiaMLummis) April 26, 2022

While he wouldn’t go into specifics, Bragg emphasized the importance of aligning on as many issues as possible with the U.S. given the historical partnership between the two nations:

“I see that as an economic growth area, as a security objective, because we have a unique relationship with the United States, which is cultural, economic, military. So we want to be close to our friends in the United States on these issues as much as we can.”

He also suggested that both governments are looking to set global standards for crypto regulation, noting that “the executive order from President Biden is reasonably similar to what Treasurer Frydenberg released last December.”

“[If] two large, sophisticated financial economies like the United States and Australia come together that could help drive standards in other parts of the world,” he said.

In terms of collaboration, or at least regulatory equivalence, Bragg noted that it “looks like they've been able to move more quickly on getting different sorts of products into the market. So we'll see what lessons we might be able to pick up there.”

One area that may differ is the two nations’ approach to launching a central bank digital currency (CBDC), with Bragg noting that the U.S. seems more receptive to the idea. Australia’s Reserve Bank has stated there’s no compelling need for one due in part to the nation’s instant digital payments network and Bragg stressed that he was “very cautious” about it at this stage.

“I think I'm, you know, probably more aware of the issues and the risks of going there. So we just need to get the Treasury report done on this issue. I'm hoping that can be done, you know, quickly after the election.”

Asked if Labor being voted in would derail Bragg’s efforts at crypto reform over the past two years, the Senator frankly stated that he had no idea.

“I mean, you’ll have to talk to Labor about it. But I mean, they haven't got any policy. So, yeah, I certainly hope not, but I mean, they don't have any policies,” he said.

Bragg also delivered a speech at the Accounting Business Expo in Sydney yesterday, as he outlined his political parties’ intention to provide “good regulation” as opposed to stifling regulation.

“Regulation which creates certainty while inviting the possibility of more innovation, including innovation which we cannot anticipate. Regulation which protects the interests of consumers and investors on a level playing field – while allowing for flexibility, inventiveness, and experimentation.”

“Regulation which provides a safety net when the market fails but holds individuals accountable for the consequences of their actions,” he added.

‘7 words is not a crypto policy’: Aussie opposition under fire as election looms

April 8, 2022 Coin Telegraph

Coin Telegraph

As a national election looms, focus is shifting towards crypto policy, which critics say the Opposition party is lacking.

Australia’s opposition Labor party is facing criticism over its lack of formal policy regarding the cryptocurrency industry just days before a national election is expected to be called

Prime Minister Scott Morrison, from the Liberal Party, is expected to fire the starters pistol for a Federal election this weekend. However, the Australian Labor Party (ALP) is well ahead in the polls at this stage and their crypto policies are less than comprehensive.

With at least 18% of Australians having invested in crypto at some point according to new figures from Gemini, cryptocurrency is becoming an election issue that cannot be ignored.

Crypto venture capitalist Mark Carnegie said at the Australian Financial Review Cryptocurrency Summit this week that he believes crypto should be a key talking point for the election candidates. "The idea that the Labor Party does not have a policy about what we’re doing about this, it just shows you the failure of leadership," he said.

Shadow Minister for Financial Services Stephen Jones pushed back against the appraisal and said that if the ALP won, it would consider crypto in a wider overhaul of digital payments, such as Apple and Google's wallets.

“The broad principles we would take to crypto regulation is safety and transparency… That inevitably leads to greater regulation of exchanges.”

Jones also said the ALP would look to include cryptocurrency as a financial product, which would bring it under the purview of the Australia Securities and Investments Commission (ASIC).

Responding to the headline of an AFR report on the matter Government Senator Andrew Bragg tweeted: “7 words is not a crypto policy.”

Senator Bragg headed up an Australian Senate Committee inquiry last year that recommended broad, sweeping reforms in crypto legislation. In December, the government announced it was in favor of six out of nine reformsttee, including a licensing regime for crypto exchanges, laws to govern decentralized autonomous organizations, and a common access regime for new payments platforms.

It is unclear whether the ALP will seek to embrace the proposed reforms if it wins Government. Jones did not respond to a request for comment from Cointelegraph, but we will update the story if he does.

Senator Bragg believes the Opposition is ill-equipped to handle the crypto industry. He told Cointelegraph today that: “Simply put, the Opposition doesn’t have a policy on cryptocurrency.”

“Labor has no serious agenda for digital assets other than a few throwaway lines. The Australian people have been given no clue on what Labor’s crypto policy. It’s consistent with their economic plan which is no plan.”

Senator Bragg added that the ALP's lack of clear direction for the crypto industry, meant the country could begin to fall behind other countries vying for skilled workers in the crypto industry.

“Australia risks losing investment and talent to other countries unless we act quickly. The Coalition’s policy puts us ahead of the race, the ALP’s policy void means Australia will lose out.”

He said that his party’s plan includes holding consultations with industry stakeholders before making any final decisions, but that his cohort is “ready to follow through” with action. "We want a regime for markets and custody, a board of tax review, and a token mapping exercise. All of these programs are currently underway,” he said.

Rather than treating crypto as a financial product, the Liberal plan appears to take an educate-then-incubate approach toward crypto policy.

However, a top-down approach towards regulating emerging or innovative markets has always been questioned by entrepreneurs, as pointed out by Max Parasol in Cointelegraph last October.

Aussie crypto ‘finfluencers’ face tough new legal restrictions

April 4, 2022 Coin Telegraph

Coin Telegraph

The Australian securities regulator is taking a stand against financial influencers whom they believe to be bamboozling the general public with misinformation about crypto.

New warnings from the Australian Securities and Investments Commission (ASIC) on appropriate conduct for financial influencers could have a dramatic impact on the local crypto industry.

ASIC’s recent Information Sheet outlines the traps influencers and the companies that hire them could fall into while wittingly or unwittingly promoting financial products. The penalties for failing to heed ASIC’s warnings could lead to millions of dollars in fines for corporations and up to five years in prison for individuals.

Although it does not specifically mention crypto influencers, the guidelines certainly apply to them as cryptocurrency investing services are seen as financial products. To those financial influencers or ‘finfluencers’ who are not sure whether their brand is in violation of the law, ASIC writes “Think about your content carefully and whether you are providing unlicensed financial services.”

One point of confusion in the new rules concerns exactly what constitutes promotion as opposed to innocuous informing of financial products. Financial blogger from Strong Money Dave Gow wrote on March 29 that “Writing almost anything could influence someone to invest or use any financial product.”

Gow’s assessment is based on the somewhat nebulous distinction ASIC has made between objective facts about a financial product and the way in which influencers may present them. It states:

“If you present factual information in a way that conveys a recommendation that someone should (or should not) invest in that product or class of products, you could breach the law by providing unlicensed financial product advice.”

Australian Liberal Senator Andrew Bragg believes there is an incongruence between the new ASIC guidelines and how crypto is regulated in his country. He believes that under current laws, the crypto industry should be exempted from these new restrictions. He told Cointelegraph in an email:

“ASIC’s current policy applies the law to crypto to the extent that digital assets fall within the definition of a financial product. Crypto is currently unregulated and not a financial product… I believe we can do more.”

Senator Bragg is a proponent of clearer crypto regulations, and recently introduced an ambitious new proposal concerning decentralized autonomous organizations (DAO) at Australia Blockchain Week last month.

As someone who may now be considered an unlicensed finfluencer, Gow takes exception to restrictions on what they now may not do, which is make any sort of recommendation. He added that the rule limits influencers to simply “parroting what you can read elsewhere” and harms the investor knowledge base. He stated, "How does that help you wade through the sea of information and nonsense out there?”

Modify old content / minimise investing discussion / not mention any financial products, funds etc.

Some may choose to close up shop, I know one who is, while others will prob continue for enjoyment in a limited capacity.

Sad situation for free speech.
— Dave Gow | Strong Money Australia (@strongmoneyaus) April 2, 2022

As part of Australia’s Corporations Act, individual influencers must beware of how they promote financial products, while corporations must also keep a close watch on their hired influencers to ensure no rules are broken. The commission offers several case studies that provide context that could help identify whether an individual or company is promoting financial services.

Senator Andrew Bragg