Local reports claim that crypto laws will not be implemented in Australia this year. The documents reveal that stakeholder discussions for consultation papers will take place later in 2023. Final legislation could be passed in 2024 or even 2025, after Cabinet gives the go-ahead for final submission.

According to Treasury documents cited by media reports, a full crypto regulatory framework will not be implemented in Australia until after this year.

Australian Financial Review revealed Treasury discussions with Treasurer Jim Chalmers on how to regulate cryptocurrencies and the Web 3.0 sector.

Crypto Laws Still Away Despite Specialized ‘Policy Unit’

The report claims that the Treasury will consult with local cryptocurrency companies and draft new laws for the next year. This is based on the Treasury schedule, which was made public under Freedom of Information laws.

However, according to the documents, the Treasury now has a separate “crypto policy unit” within the organization.

The Australian government began its efforts to regulate the cryptocurrency industry by tightening regulations in the last two years. In August 2022, the regime announced the launch of a token mapping exercise.

Treasurer Chalmers noted that he would “keep up with developments and provide greater protections for consumers.”

He further added that “Treasury expects some stakeholders to be disappointed with the perceived delay in implementing a licensing regime,” according to the memo to CFO Chalmers. “For example, consumer groups seeking immediate protections and companies seeking regulatory legitimacy.”

Australian Regulators Expect Longer Bear Market

The report comes despite the fact that the FTX debacle has wreaked havoc on the industry.

Amid the apparent lack of urgency from the government, final legislation may not be passed until 2025. According to the report, the government intends to publish consultation documents in the second quarter of 2023.

In the meantime, it will reportedly hold stakeholder roundtables on cryptocurrency licensing and custody regulations in the third quarter of 2020 this year.

Reuters recently claimed that thousands of Australians now stand to lose millions of dollars in retirement income plans, thanks to cryptocurrencies. Investors reportedly used do-it-yourself pension funds to bet on cryptocurrency in the country, leading to losses.

Meanwhile, Australian citizens are a preferred target for cryptocurrency hackers amid rising online theft. According to an investigation by European authorities into four Serbian call centers, Australian wealth has made them a favorite target for scammers.

Despite the urgency of the railings, the document stresses that the government is counting on the crypto winter for now. The document says: “While much innovative development continues, consumer and investor demand for crypto assets has weakened significantly for now.”

According to the Treasury, current market conditions ease consumer protection and regulatory concerns somewhat. Since consumers have less demand for cryptocurrency assets at the moment.

Therefore, the Cabinet is not expected to receive any final submissions until near the end of this year. According to business analysts cited by the document, the timeline indicates that the legislation will likely not pass until well into 2024 or 2025.

By Audy Castaneda

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