The Australian government is going to postpone the introduction of regulations for the cryptocurrency industry until 2025. Reason: declining interest of local investors in crypto assets.
The Australian authorities were expected to introduce legal regulations for the oversight of the digital asset market by the end of 2022. Industry participants believed that officials would accelerate the development of standards for crypto companies after numerous bankruptcies of crypto lenders and exchanges.
However, according to the Australian Treasury document , the government is in no hurry to create a regulatory framework for local crypto companies. Legislators intend to consider this issue only in the second and third quarters of the year and, if all goes well, pass laws in mid-2024 or even 2025.
The Treasury believes that there is no need to rush to amend the legislation on cryptocurrencies, as recent negative events, including the collapse of the FTX exchange, have significantly reduced the demand of Australian investors for digital assets. Raising rates by central banks to fight inflation has also turned many people away from cryptocurrencies and other risky assets, officials say.
Recently, the local central bank launched a pilot project to explore options for using the digital Australian dollar. Earlier, the central bank reported that commercial financial institutions showed interest in eAUD.
