Crypto exchange Cointree has voiced its support for cryptocurrency regulation set to be introduced by the federal government next year.
Many of the proposed reforms align with recommendations made by the Senate select committee on Australia as a technology and financial centre, which called for a “comprehensive crypto framework” in its final report in October.
“While we understand some investors will prefer the ‘wild west’ approach to regulation, it is our opinion that a poorly regulated market brings risk and is ultimately a barrier to wealth generation,” said Cointree CEO Shane Stevenson.
“This interest from government in implementing a more comprehensive and modern legislation framework could also bring the added benefit of an overall price increase as more sophisticated investors including institutional and SMSF investors join the asset class in greater volumes.”
Cointree’s positive perspective on the prospects of regulation echoed comments made last week by other exchanges including Kraken Australia and BTC Markets.
Highlighting the recent collapses of exchanges such as MyCryptoWallet, Mr Stevenson said it was no longer possible to ignore the need for better regulation of companies that facilitate or are involved in the trading of crypto.
“As a new and lucrative asset class, there have been a number of competitors enter the market in a very short time frame, and as one of the oldest running exchanges who are focused on educating newcomers to the sector, it is disappointing to see slow responses from governments impacting new crypto investors,” he said.
Under the recommendations made by the Senate select committee, Cointree and other crypto exchanges would need to hold a new category of market licence which would subject them to “capital adequacy, auditing and responsible person tests”.
Mr Stevenson said this would allow Cointree to demonstrate its commitment to customer protection and integrity.
“Since the conversation around regulation began, Cointree has always supported any movement that will help cement crypto as a legitimate asset class alongside equities, gold and property, and we look forward to hearing the government’s planned strategy for 2022.”
Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.