{"id":145503,"date":"2021-11-23T03:27:59","date_gmt":"2021-11-23T03:27:59","guid":{"rendered":"https:\/\/precoinnews.com\/?p=145503"},"modified":"2021-11-23T03:27:59","modified_gmt":"2021-11-23T03:27:59","slug":"proposed-australian-exchange-licensing-could-stifle-competition-kraken","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/crypto\/proposed-australian-exchange-licensing-could-stifle-competition-kraken\/","title":{"rendered":"Proposed Australian exchange licensing could stifle competition: Kraken"},"content":{"rendered":"

With crypto regulation reportedly set to ramp up in Australia over the next 12 months, Kraken Australia\u2019s Managing Director Jonathon Miller thinks that a strict crypto regime could stifle local competition. <\/p>\n

The Senate Committee on Australia as a Technology and Financial Center, led by crypto-friendly Senator Andrew Bragg tabled 12 extensive recommendations for regulation of the digital asset and Fintech industry last month. The proposals included a new licensing regime for crypto exchanges, new laws to govern decentralized autonomous organizations (DAOs), and an overhaul of capital gains tax in decentralized finance (DeFi) to name a few. <\/p>\n

In an exclusive interview with Cointelegraph, Miller said it was \u201cyet to be seen\u201d if the proposed regulations would have a positive or negative effect on the local sector moving forward, noting that: <\/p>\n

\u201cWe’ve seen other markets where onerous regulatory regimes have come in and you know, you see a collapse of competition, a collapse of the vibrancy that we’ve got today in Australia.\u201d<\/p><\/blockquote>\n

\u201cAnd I hope that doesn’t happen because that will be bad for the consumer in the long run,\u201d he added.<\/p>\n

Under the proposed market licenses for Australian digital currency exchanges (DCE), local firms would need to meet strict \u201ccapital adequacy, auditing, and responsible person\u201d requirements to obtain a license to operate. <\/p>\n

Speaking on the matter, Miller drew comparisons with Japan as he argued that the limited number of options on the market due to the government’s strict licensing requirements\u00a0which also negatively impact the local consumer. <\/p>\n

\u201c[Kraken has] a markets license in Japan, one of the very few crypto companies available to Japanese users. Even though we’re active there and we’re really supportive of that market, I don’t think that’s good for the Japanese people that there are so few opportunities for players in space,\u201d he said. <\/p>\n

Caroline Bowler, the CEO of local crypto exchange BTC Markets offered a different take, however, telling Cointelegraph that the incoming crypto regime in Australia will \u201cenhance and enable innovation.\u201d<\/p>\n

\u201cThe proposal, I feel, had a lot of very forward-looking points of view in it. The talk about DAO\u2019s in particular, that would be extremely innovative from a regulatory point of view for any country, any jurisdiction, anywhere in the world,\u201d she said. <\/p>\n

Bowler stated that the \u201csingle biggest roadblock\u201d for the firm when exploring expansion opportunities for compliant services and products last year was the lack of crypto-focused regulation in Australia: <\/p>\n

\u201cThat was causing issues across the business and issues for us to expand and issues for our clients and causing a hesitancy amongst people coming in. We couldn’t offer the full range of what we wanted to offer.\u201d<\/p><\/blockquote>\n

\u201cAnd the licensing regime, as it currently existed for traditional markets, was a shoe that didn’t fit. We couldn’t squeeze in,\u201d she added.<\/p>\n

Related: <\/em><\/strong>Australian Senator says DeFi is ‘not going away any time soon’<\/em><\/strong><\/p>\n

Adrian Przelozny, the CEO of Australian and Singapore-based crypto exchange Independent Reserve (IR) echoed similar sentiments to Bowler, noting that the \u201cupside of regulation far outweighs any risks.\u201d <\/p>\n

IR became the first Australian crypto exchangeto obtain a Major Payment Institution License in Singapore at the startof October. Przelozny suggested that the firm\u2019s registration under the Monetary Authority of Singapore\u2019s licensing regime has significantly improved the IR\u2019s legitimacy in the eyes of its potential partners:<\/p>\n

\u201cI can tell you that being in a licensed jurisdiction is much better than being in an unlicensed jurisdiction. And this is because it really changes the conversations that we have with the partners that we get to work with.\u201d<\/p><\/blockquote>\n

Przelozny highlighted that the \u201cbiggest challenge\u201d for crypto firms in Australia is being able to secure good banking relations, with de-banking being a key issue in the local crypto climate. IR\u2019s CEO stated that this may nolonger be an issue once local companies can acquire the appropriate licensing. <\/p>\n

\u201cOver in Singapore, as soon as we got the license, we found the banking conversations completely changed and now the banks are approaching us to be their customer,\u201d he said.<\/p>\n

Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

With crypto regulation reportedly set to ramp<\/p>\n","protected":false},"author":3,"featured_media":145502,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"\nProposed Australian exchange licensing could stifle competition: Kraken - Pre Coin News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/precoinnews.com\/crypto\/proposed-australian-exchange-licensing-could-stifle-competition-kraken\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Proposed Australian exchange licensing could stifle competition: Kraken - Pre Coin News\" \/>\n<meta property=\"og:description\" content=\"With crypto regulation reportedly set to ramp\" \/>\n<meta property=\"og:url\" content=\"https:\/\/precoinnews.com\/crypto\/proposed-australian-exchange-licensing-could-stifle-competition-kraken\/\" \/>\n<meta property=\"og:site_name\" content=\"Pre Coin News\" \/>\n<meta property=\"article:published_time\" content=\"2021-11-23T03:27:59+00:00\" \/>\n<meta name=\"author\" content=\"mediabest\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/precoinnews.com\/wp-content\/uploads\/2021\/11\/Proposed-Australian-exchange-licensing-could-stifle-competition-Kraken.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"mediabest\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/precoinnews.com\/crypto\/proposed-australian-exchange-licensing-could-stifle-competition-kraken\/\",\"url\":\"https:\/\/precoinnews.com\/crypto\/proposed-australian-exchange-licensing-could-stifle-competition-kraken\/\",\"name\":\"Proposed Australian exchange licensing could stifle competition: Kraken - 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