Tech Council of Australia supports proactive regulation of digital assets

The Tech Council of Australia (TCA) is calling for more ‘proactive regulation’ of digital assets including stablecoins, central bank digital assets (CBDC), tokens and cryptocurrencies.

The TCA’s Digital Assets in Australia report suggests four principles for policymakers to follow to improve digital asset regulation, including outcomes-based regulation, agile, iterative and collaborative design, global market-focussed, and risk-calibrated regulation.

“Australia’s approach to the regulation of the nascent sector can be described as ‘precautionary’. However, as the technology matures and its potential impacts become widespread, a more proactive and considered approach to regulation should be taken,” the report stated.

Kate Pounder, CEO of TCA said the correct safeguards need to be in place to both protect consumers and deliver financial stability, as well as unlock the benefits that digital assets (DA) offer to Australians.

“Digital assets have the potential to transform the way Australians transact and interact, from real-time payments and instant settlement of business loans to better supply chain tracking and secure digital identities,” said Pounder.

“Australia has an opportunity to be a leader in the responsible use of these technologies, building on our long history of financial and payments innovation and our position as a regional financial hub with effective financial institutions, tech-savvy consumers and a successful RegTech sector.”

Following these guiding principles in order to tighten regulation in the nascent sector will have tangible economic benefits according to the report.

According to the report, “This approach to regulating the industry could catalyse $15-$20 billion in additional investment, $10-$15 billion in additional tax revenues, $160 per person in transaction fee savings and 80 hours of time saved per business annually by 2030.”

The TCA also promoted the role of the government in developing the digital asset sector.

According to the report, “As a regulator, promoter, investor and catalyst, Government can position Australia as a global leader in responsible and trusted DA.”

Pounder said, “The Tech Council welcomes the Australian Government’s moves to regulate digital assets exchanges and custody arrangements, and stands ready to work collaboratively with the Government to get our settings right.”