IDAXA INDUSTRY RESPONSE STATEMENT TO AUSTRALIAN DIGITAL ASSETS (MARKET REGULATION) BILL 2023

13 April 2023

STATEMENT FROM THE CO-CHAIR

As the Co-Chair of the International Digital Asset Exchange Association, I appreciate Senator Andrew Bragg’s initiative to introduce the Digital Assets (Market Regulation) Bill 2023. However, it's clear that more needs to be done to ensure that Australia doesn't fall behind in the race to regulate digital assets.

While the previous government took some steps towards regulatory reforms, we must recognize that our domestic regulatory approach is still falling short when compared to international regulatory trends. As global regulators like the Financial Action Task Force, the Financial Stability Board and International Organization of Securities Commissions continue to provide guidance on cross-jurisdictional digital asset regulation, it's important that Australia takes a more informed approach to address the regulatory gaps that exist.

We acknowledge that the consultations initiated by Treasury on custody and licensing requirements were a good starting point, but we need to continue the conversation with government and industry stakeholders to ensure that the regulatory framework is robust enough to protect consumers and promote continued investment. It's imperative that we do not miss any steps in this process and work towards creating a comprehensive regulatory framework that aligns with international standards given the global nature of this financial technology.

We urge the government to engage in a more productive dialogue with the industry and encourage all stakeholders to come together to develop a comprehensive regulatory framework for digital assets that meets the needs of both consumers and businesses. We also encourage stakeholders to align with global harmonized frameworks and remove any impediments to the growth of the industry and its ecosystem, in line with the recommendations of the FATF, FSB and IOSCO. The International Digital Asset Exchange Association is committed to working with both the Australian government and industry to achieve this goal.

Read the full IDAXA Industry Response Statement here.

Loretta Joseph

Co-Chair,
International Digital Asset Exchange Association