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In spite of indications in February that 2 million pro-crypto constituents could influence the result of this week’s Australian Federal Election, crypto has hardly received any attention throughout the campaign.
“I believe it’s an unutilized opportunity,” Independent Reserve founder Adrian Przelozny informed Cointelegraph. “Neither party has elevated crypto as a primary issue because they fear alienating voters or appearing too specialized.”
However, the positive news is that following over a decade of stagnation, both the governing Australian Labor Party (ALP) and the opposition Liberal Party are vowing to implement crypto regulations formulated in partnership with the industry.
In April, Shadow Treasurer Angus Taylor pledged to unveil draft crypto regulations within the initial 100 days after taking office, while the Treasury itself has draft bills on “regulating digital asset platforms” and “modernizing the payments system” announced for release this quarter.
Amy-Rose Goodey, CEO of the Digital Economy Council of Australia, stated that both parties “are similarly committed to advancing this draft legislation.”
“Regardless of who comes into power, we’re in a stronger situation than we were approximately a year ago.”
Pro-crypto voters have options in the Senate as well, with the Libertarian Party publishing a 23-page Bitcoin policy in March — advocating for the establishment of a national Bitcoin (BTC) Reserve and the recognition of Bitcoin as legal currency.
The minor party is presenting five Senate candidates in various states, including former Liberal MP Craig Kelly, but does not currently have any representation in the Senate.
The progressive left-leaning Greens party has not delineated a stance on crypto, while the conservative right-wing One Nation party has campaigned against debanking and CBDCs.
Over a decade of inaction regarding crypto
Australia’s inaugural parliamentary inquiry into digital assets took place back in 2014, yet there has been over ten years of regulatory inactivity since then. The industry argues that this has resulted in stagnation and a talent exodus to jurisdictions such as Singapore and the UAE.
The former Liberal Government was contemplating the groundbreaking Digital Services Act, based on the 2021 Senate Committee’s crypto suggestions, when it lost power in 2022. In spite of ongoing discussions since then, the ALP government, led by Prime Minister Anthony Albanese, has not presented any legislation to parliament.
Nonetheless, there has undoubtedly been a shift in sentiment from the ALP recently, with Treasurer Jim Chalmers telling Cointelegraph that digital assets “represent significant opportunities for our economy.”
”We want to capitalize on these opportunities and foster innovation while ensuring that Australians can utilize and invest in digital assets safely and securely with suitable regulation.”
His office stated exposure draft legislation would be released “in 2025” for consultation, introduced into Parliament “once that feedback has been considered,” with subsequent reforms “phased in gradually to reduce disruptions to existing businesses.”
The shadow assistant treasurer, Luke Howarth, remarked that the ALP has been tardy in taking action because it lacked a blockchain policy when it was elected.
“It wasn’t until after the FTX collapse that they recognized the need for regulation,” he informed Cointelegraph. “The Albanese government initially vowed to implement regulation by 2023 but has not managed to draft legislation or provide a clear timetable for action. After three years, all that was presented to the industry was a six-page placeholder document.”
He references Treasury’s March statement “on establishing an innovative Australian digital asset industry.” It allows for the licensing of Digital Asset Platforms (DAPS), a framework for payment stablecoins, and a review of Australia’s Enhanced Regulatory Sandbox.
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While lacking in specifics, those objectives are broadly akin to the crypto regulation priorities that Howarth describes to Cointelegraph — the principal distinction being that the opposition has pledged to a quicker timetable.
Przelozny commended the 100-day promise as “precisely the type of urgency we require.”
If elected, the Liberal Party’s legislation is anticipated to draw some inspiration from Senator Andrew Bragg’s private members bill in 2023 and some from the more recent initiatives undertaken by the Treasury.
The government intensifies efforts
The Treasury has been discreetly drafting legislation this year, which Goodey understands is “nearly finalized.”
“There’s been a prioritization within Treasury, and I know that their team has nearly doubled — the digital asset team — for drafting that legislation. Therefore, there has been a commitment in that over the past six months.”
Przelozny views the ALP’s approach as “prudent and systematic, yet it’s been slow,” emphasizing consumer protection and risk management.
BTC Markets CEO Caroline Bowler stated that the election of a pro-crypto Trump administration and the UK’s draft regulations
“`(debuted this week) likely compelled both political factions to finally take matters seriously.
”Australia has ground to recover, and I would foresee this becoming a significant element in the astute strategy of both parties,” she commented.
Stand With Crypto initiative and ASIC
The Stand With Crypto initiative is ongoing in Australia but has remained relatively subdued during the campaign, concentrating on debanking.
John O’Loghlen, managing director for APAC at Coinbase urged whoever prevails in the election to establish a “Crypto-Asset Taskforce (CATF) within the first 100 days.” This taskforce would comprise representatives from both the industry and consumers to finally realize crypto regulations.
“If Australia doesn’t act promptly, we risk lagging even further behind,” he informed Cointelegraph.
“The next administration must progress past consultation and into legislation.”
The Australian Securities and Investments Commission (ASIC) serves as the local equivalent to the US Securities Exchange Commission (SEC). It unveiled its own crypto regulatory recommendations in December.
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Joy Lam, Binance’s global regulatory and APAC legal head, conveyed to Cointelegraph that she does not anticipate ASIC to suddenly alter its course if a new government takes charge, unlike the SEC.
“ASIC does not legislate,” she remarked. “I do not foresee a total reversal, as ASIC operates independently and has its own mandate, yet it clearly functions within the legislative framework that the government will establish.”
Which candidates should single-issue crypto voters support?
In February, a survey conducted by YouGov and Swyftx indicated that 59% of crypto users would support a pro-crypto candidate in the federal election over all other concerns. This represents approximately 2 million Australians and could significantly influence the election outcome.
However, the commonalities between the main parties concerning crypto regulation far outstrip their differences. Goodey stated that both political factions have sincerely engaged with the industry regarding its worries and priorities.
“The language in their media releases from March and April this year reflects that they are aligned on the key industry issues,” she noted.
Due to Senator Bragg’s advocacy for crypto, the industry associates the Liberal Party with greater enthusiasm for digital assets; still, after three years in power, the ALP seems to have reached a comparable position.
Recent YouGov and Resolve polls suggest a favorable reelection for the current government.
While internal Liberal polling indicates that a minority government from the ALP could be a real possibility, the major parties would collectively have sufficient votes to pass bipartite crypto legislation.
Whatever unfolds, 2025 appears poised to be the year when Australia finally delivers the clarity that the crypto industry requires.
“For the industry, the timing is exceedingly crucial now as this matter has been deliberated and postponed for several years,” Lam remarked.
“I would assert that we are cautiously optimistic.”
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