As the battle for regulatory clarity in Australia erupts, Leigh Travers, CEO of Binance Australia, believes such a structure will demonstrate that the cryptocurrency sector adheres to a higher standard, unlike many perceive.
In a recent interview, Travers discussed the present state of regional crypto regulation endeavors and how the lack of certainty constrains the sector’s prospects. As an example, last month, the Commonwealth Bank of Australia (CBA) put on the back burner a trial program for its cryptocurrency trading services due to this lack of clarification.
While there are no laws in Australia forbidding CBA’s new crypto program outright, Australian financial regulators have advocated for a halt due to the lack of user protection efforts. Regulators emphasized that without the proper regulations in place to permit the operation of these crypto services, they cannot demonstrate the sustainability of their services.
According to Leigh Travers, the crypto business has already been beyond standard finance regulatory systems, and he feels that new regulations must acknowledge this. He stated that he believes the crypto market desires regulation for a valid cause.
The Dilemma of Crypto Classification
According to Travers, a wise regulatory framework would make this higher standard evident to Australians. In January, the blockchain analysis company Chainalysis made it obvious that cash is still superior when it comes to financial fraud, regardless of new regulations.
The fact that cryptocurrencies such as Bitcoin and Ethereum do not readily fit into any current classification for properties or monetary items is still another aspect, according to Travers. He thinks that the cryptocurrency business is distinct from traditional finance. In Australia, cryptocurrencies are currently classified as properties.
As decentralization expands, the separation between cryptocurrency and other assets may erode over time, according to Travers. He further added that the fact that crypto is applicable to a variety of products exacerbates the issue of appropriately regulating it.
Senator Andrew Bragg was identified by Travers as being one of the cryptocurrency advocates on the Liberal side, but the domestic industry may be without a crypto champion for the first time in nine years as the Labor Party has seized power.
He stated that the previous Liberal Party majority viewed the industry with its high-paying employment and growth outputs favorably. Travers is concerned that the ongoing work on new regulations would be significantly slowed down because Labor is not directly concentrated on blockchain or cryptocurrency, which could handicap the local industry.
The Crypto Industry Begs For Clearer Regulation
Travers feels that the crypto sector is begging for better regulation because it is difficult to deliver services in the current climate. He stated that those involved in crypto want to demonstrate that they hold themselves to a better standard than is commonly believed.
Travers, on the other hand, is primarily bullish on the crypto market despite the latest price crash in which BTC has fallen below its realized price for the very first time since March 2020. It is only a matter of how long before the tide turns back in favor of the bulls, he said, noting that crypto will suffer in the short term as most of this is macro-driven. Overall, Travers seemed positive about cryptocurrencies.
