Aussie crypto exchange welcomes regulations

Yasmine Raso

Senior Journalist, Financial Newswire

22 November 2022

Australian cryptocurrency exchange, Independent Reserve, has embraced the Federal Government’s announcement regarding the introduction and implementation of a framework to regulate digital assets.

The announcement follows the collapse of one of the world’s largest cryptocurrency exchanges, FTX, last week, and the release of recommendations from the 2021 Senate Select Committee on Australia as a Technology and Financial Centre to improve customer protection related to digital assets.

“The FTX situation is very disappointing for the whole industry. It highlights the urgent need for greater transparency and accountability, and for a regulatory framework to protect consumers,” Independent Reserve, CEO, Adrian Przelozny, said.

“We commend the Federal Government on its intention to introduce reforms next year – what we need is less talk and more action, and we need it now.

“The Albanese Government now has a unique opportunity to enable Australia to be a world-leading digital economy and society. The introduction of stronger regulation and policy change will drive investment, provide certainty to the sector and ultimately, increase consumer protection.

“There is no better time than now for them to lead the way with these reforms. But they need to move on it as a matter of focus – the time for talk is over, the time for action is now.”

Przelozny also took the opportunity to reassure Independent Reserve customers that they would not be impacted by FTX’s collapse, as the firm has no exposure to it or the FTT token.

“As more Australians invest in digital assets, it’s critical that we have a robust and competitive regulatory, tax and policy framework that deals with these assets,” he said.

“We must take urgent action to ensure that what happened with FTX cannot happen here in Australia.

“For consumers to have recourse in a situation such as this, custody must be done onshore, in Australia, by a qualified team adhering to a strict set of risk policies with external oversight by independent auditors.

“For too long, investors have had to weigh up access to the growth of digital assets such as cryptocurrencies with the risks of investing in a largely unregulated environment. Australian investors deserve better.”