With bitcoin now comfortably hovering in the US$100,000 range and President Donald Trump taking his first major policy step by launching a new cryptocurrency regulatory group and vowing to have regulatory framework in place within 180 days, the Coalition is ready to capitalise on the gap left by the Albanese government’s cautious approach.
That is according to shadow assistant treasurer and shadow financial services minister Luke Howarth who took the opportunity last week to blast the Albanese government for failing to act on cryptocurrency regulation.
In a statement made to InvestorDaily following an address at a Stand With Crypto event, Howarth criticised the government for repeatedly promising fit-for-purpose cryptocurrency legislation in 2022, 2023 and 2024, only to “come clean” that draft legislation won’t be ready until at least 2025.
“Australians are increasingly investing in crypto and deserve the protections afforded by fit-for-purpose regulation. This is not a priority for Albanese’s minister and it has been left too late, with no hope of it being legislated this term,” Howarth said.
“[It] can be added to the long list of financial services reforms that have fallen by the wayside,” he said.
In contrast, Howarth pledged the Coalition’s unwavering support for the cryptocurrency and blockchain sectors.
“The Coalition supports a fit-for-purpose regulatory regime for digital assets and stablecoins – one that provides certainty, protects consumers, fosters innovation and allows Australian businesses to compete on a global scale,” he said, vowing to work quickly to put regulation in place.
Howarth also fired a warning shot over the Australian Securities and Investments Commission’s (ASIC) current approach to cryptocurrency, accusing the regulator of “regulation by enforcement”, which he argued was driving operations offshore and stifling innovation.
In his statement to InvestorDaily, Howarth also accused the corporate regulator of “pre-emptively shaping” the regulatory landscape for digital assets before a comprehensive legislative framework is established.
“These operations are likely to move offshore if ASIC starts regulation by enforcement and litigation under existing laws which don’t fit neatly, changing its long-standing position.
“This will create unnecessary compliance costs and an environment of regulatory uncertainty that is unwelcoming to both domestic innovators and international investors. Australian blockchain businesses with transformative potential will likely consolidate or leave,” he said.
Cryptocurrency experts in Australia have long warned that the country could fall behind especially as nations like the US take a keener interest in cryptocurrency.
BTC Markets’ head of finance, Charlie Sherry, recently said that while local efforts are underway, they need to accelerate to remain globally competitive.
“We are at a pivotal moment for the sector’s future, requiring decisive action and strategic foresight,” he said.
“The global momentum around blockchain, tokenisation and cryptocurrency cannot be ignored. Over a quarter of Australians already engage with digital assets, viewing them as transparent, inclusive alternatives to traditional systems.”
Similarly, in a recent conversation with InvestorDaily, Magnet Capital’s Egor Sidelska said Australia faces a real risk of being sidelined.
“The problem is Australia still doesn’t care. I think that Australians are going to miss this entire market simply by just sitting on the sidelines and just not being interested,” he said.
Acknowledging that Australia has historically enjoyed long-term success with traditional asset classes like property and shares, Sidelska highlighted that the cryptocurrency market, comparatively, moves very quickly.
“You have to really care in order to follow this market. So unfortunately, we’re just not in a position to do that. We don’t even have the right insurances in place for wealth advisors to have a stance on this.
“Something really drastically has to change, either from a policy standpoint or from a regulatory standpoint … otherwise, you know, you’re really missing out,” Sidelska said.
In December, ASIC released a consultation paper aimed at providing greater clarity on how the current financial product definitions apply to digital assets and related products.
