Crypto reform will have to wait until after the federal election next year, Andrew Bragg says

Bitcoin is nearing record highs, but landmark reform for the sector will have to wait until next year.

Australian politician Senator Andrew Bragg in his office at Parliament House in Canberra. Picture: Gary Ramage/NCA NewsWire

Landmark cryptocurrency law reform will happen within the next 12 months but not before the next election, Liberal senator Andrew Bragg has revealed, as local crypto companies call for new laws to be passed as a matter of urgency.

Mr Bragg’s Senate fintech committee handed down its report a fortnight ago recommending an overhaul of tax rules to be more friendly for the likes of bitcoin.

Bitcoin prices have been rocketing throughout October, nearing all time highs set early this year.

The senator said given the electoral cycle timing it will not be possible to legislate the suite of reforms before the election, however.

“Canberra can sometimes have trouble catching up to the tech sector, where development is exponential, and that knowledge gap is even larger,” Mr Bragg said in a speech on Tuesday.

“In this case, I think the crypto report will be addressed quickly and we’ll see reform within 12 months.

“The debanking recommendations must be addressed urgently. We set out a series of recommendations designed to take the banks’ excuses for debanking away. Law reform is essential.

Bitcoin is making steps towards mainstream adoption. Picture: Ozan Kose/AFP

“Our committee recognised the disadvantage to individuals using crypto who were being debanked – and is attempting to ensure that doesn’t keep happening.”

Mr Bragg is working to secure Liberal party support to adopt the recommendations as party policy for the next parliament.

“If we secure the trust of the Australian people, we can implement the plan within 12 months,” he said.

“We need to move quickly for obvious competitive advantage reasons. But there is also a time imperative because the committee decided not to recommend a “safe harbour” in the absence of a legal framework.

“I felt we couldn’t give this sort of blank cheque. But if it does become government policy, there will be scope to work with the regulators to issue statements about matters which may require relief as we embark upon reform.”

Australia’s crypto industry welcomed the report into cryptocurrencies, but called for its recommendations to be implemented as quickly as possible so that the nation can become a crypto powerhouse and capitalise on the rampant popularity of bitcoin.

“The major issue the industry has been facing is access to services such as banking, and an opportunity to conduct their business with the best standards and compliance in mind, which the Senate is now recommending,“ Binance Australia chief executive Leigh Travers said.

“Larger players, like Binance Australia, have the financial capabilities, technical skills, and the appropriate level of experience to manage a digital asset exchange that has lower fees and better liquidity for users.

“This new regimen will allow the leading players to showcase these capabilities.

“By introducing a regimen for custody, Australia is seeking to present a market for a crypto industry that has a similar capitalisation to rival the entirety of Australia’s market for custodial service providers.”

Mr Bragg said that since its inception, cryptocurrency has largely been left to its own devices.

“Investors have made money, and communities have been built through a shared passion for the innovative sector,” he said.

“So when I was assigned the role of chair of the Senate Select Committee on Australia as a Technology and Financial Centre, I assumed there would be resistance.

“But to my surprise – I’ve never seen an industry so keen for regulation. Almost everyone I’ve spoken to in this industry understood that regulation would bring credibility and validity to this sector that had been cast aside by many as fanciful and illegitimate for its 12 year lifespan.”