Jonathon Miller, CEO of Kraken Australia, believes that with the tightening of cryptocurrency regulation in Australia over the next 12 months, tight cryptocurrency regulation could stifle local competition.

The Senate Committee on Australia’s Technology and Finance Center, chaired by Senator Andrew Bragg, made 12 overarching recommendations last month on regulating digital assets and the financial technology industry. The proposals included a new licensing system for cryptocurrency exchanges, new laws governing decentralized autonomous organizations (DAOs), and capital gains tax reform in decentralized finance (DeFi), among many others.

In an exclusive interview with Cointelegraph, Miller said that it is “not clear yet” whether the proposed rules will have a positive or negative impact on the local sector in the future, noting that:

“We have seen other markets where stressful regulatory systems have emerged, which, as you know, have seen the collapse of competition, the collapse of the vitality we have in Australia today.”
“I hope this does not happen, because in the long run it will be bad for the consumer,” he added.

Under DCE’s proposed market licenses, local businesses will have to meet strict “capital, audit and personal liability” requirements in order to operate the license.

Speaking of which, Miller made a comparison with Japan, where he said that the limited number of options in the market due to the authorities’ strict licensing requirements also has a negative effect on the domestic consumer.

“[Kraken] has a marketing license in Japan and is one of the few cryptographic companies available to Japanese users. Although we are very active there and really support this market, I do not think it is good for the Japanese since there are very few opportunities for players in this area. “”.

Caroline Bohler, CEO of the local cryptocurrency exchange BTC Markets, suggested a different approach, but told the Cointelegraph that the Australian-based cryptosystem would “improve and innovate.”

“I think there are many very far-sighted views in the proposal. In particular, when we talk about DAO, it would be very innovative in terms of regulation for any country, any jurisdiction and anywhere in the world. ”

Bowler said the “biggest obstacle” for the company in exploring the possibilities of expanding interoperable services and products last year was the lack of crypto-focused regulation in Australia:

“It caused problems throughout the business, problems for our expansion, problems for our customers and hesitated people who came. We could not provide the full range of what we wanted to offer. ”
And the licensing system as it works for traditional markets has proven to be an inappropriate shoe. she added.

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Adrian Přelozny, CEO of crypto exchanges in Australia and Singapore, reiterated Bollers’ view, noting that “the positive side of regulation outweighs any risk.”

IR became the first Australian cryptocurrency exchange to be licensed by a major payment institution in Singapore in early October. Berzozny suggested that the registration of the company in the licensing system of the Monetary Authority of Singapore significantly increased the legitimacy of international relations in the eyes of potential partners:

“I can tell you that being in a licensed jurisdiction is much better than being in an unlicensed jurisdiction. This is because it really changes the way we talk to the partners we work with.”
Brzelzny stressed that the “biggest challenge” for crypto companies in Australia is the ability to secure good banking conditions, and bank cancellation is a major concern in the local cryptocurrency climate. The IR chief said that this may not remain a problem if local businesses can obtain appropriate licensing.

“In Singapore, as soon as we got our license, we found out that bank calls had changed completely, and now the banks are approaching us as their customers,” he said.

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