11 Nov
11Nov

The Coinbase-backed advocacy group, Stand With Crypto, has expanded its efforts to Australia, marking a significant step in its global push for clearer crypto regulations and more favorable policies. This move comes as the Australian cryptocurrency industry faces increasing challenges due to a lack of regulatory clarity, which has led many businesses and entrepreneurs to consider moving to more crypto-friendly jurisdictions. Stand With Crypto aims to change this narrative and advocate for sensible policies that can support the growth and adoption of blockchain technology in the country.

Bringing Political Attention to Blockchain's Positive Use Cases

Tom Duff Gordon, Vice President of International Policy at Coinbase, emphasized the group’s mission to raise awareness of blockchain's broader potential, beyond the negative stereotypes associated with fraud and scams. According to Gordon, the goal of Stand With Crypto in Australia is to shift the conversation and demonstrate the positive use cases of blockchain technology, from decentralized finance (DeFi) to supply chain management, healthcare, and beyond.

"We want to change the narrative from crypto just being related to fraud and scams. We want to show people the good use cases, and I think if we have that from a bottom-up grassroots movement as well as top-down advocacy, we can raise the profile of crypto in Australia," said Gordon.

Stand With Crypto’s expansion into Australia is part of a larger global strategy. The initiative first launched in Canada on July 12, 2024, following its initial rollout in the United Kingdom in May 2024. These efforts are designed to build grassroots support for pro-crypto policies while also engaging political leaders and regulators at the highest levels.

Political Support for Crypto Grows in Australia

Simon Kennedy, a member of the Australian House of Representatives, echoed this sentiment, stating that the crypto sector could expect to see increasing support from the Liberal Party in the lead-up to the federal election scheduled for late 2025.

“I think you will see the Liberal Party be a big supporter of this sector. I hope it will be bipartisan, but you will see it from us,” Kennedy said, highlighting the growing political momentum behind the sector.

This support comes at a time when the Australian government is grappling with how best to regulate crypto, and where industry players are calling for clear guidelines that will foster innovation and investment in the space.

Regulatory Clarity: A Key Challenge for Australian Crypto

The lack of clarity surrounding cryptocurrency regulation has been a consistent issue for Australian crypto businesses. John O’Loghlen, managing director of Coinbase Australia, pointed out that without clearer regulations, the country risks losing top talent and innovation to other jurisdictions.

“It’s really concerning without the clarity of regulation and necessary signposting, a lot of top talent and young human capital are going to look to start their careers elsewhere,” O’Loghlen explained.

O’Loghlen’s concerns reflect a broader sentiment in the industry. Many crypto entrepreneurs and investors are hesitant to commit to projects in Australia due to uncertainty over how the market will be regulated. Industry leaders, including Swyftx CEO Jason Titman, have echoed this frustration, pointing to the need for basic regulatory definitions and clarity on terminologies. According to Titman, Australian regulators must address gaps in the lexicon that would allow crypto assets to fit into the existing framework governed by agencies like ASIC (Australian Securities and Investments Commission).

Addressing Outdated Regulations

One of the key issues identified by O’Loghlen is that many regulatory frameworks in Australia still rely on laws that are decades old and were designed to regulate traditional markets—such as real estate or agriculture—not digital assets or decentralized technologies.

"When you look back to the Howey Act and other tests that are enforced overseas, some of this regulation is 80 to 90 years old and relates to markets like an orange grove and refers to asset classes and technologies that are quite removed from modern-day Australia," O’Loghlen noted.

As the Australian crypto industry grows, regulatory clarity is becoming increasingly urgent. Crypto advocates like Stand With Crypto are pushing for legislation that reflects the modern digital economy, ensuring that new innovations are not stifled by outdated rules.

Stand With Crypto’s Global Push

The global expansion of Stand With Crypto, backed by Coinbase, is part of a broader effort to elevate crypto advocacy on the international stage. In the United States, the group has been instrumental in pushing for crypto-friendly policies and has worked to identify pro-crypto candidates running for office. During the 2024 US elections, more than 280 pro-crypto candidates won seats in the House of Representatives and Senate, with advocates hopeful that this momentum will help push through legislation like the Financial Innovation and Technology for the 21st Century Act, which is poised for a vote in the Senate after successfully passing in the House.

Stand With Crypto's efforts in Australia, along with those in the US and Canada, represent a coordinated global push to create a more favorable regulatory environment for cryptocurrency. As the crypto industry continues to mature, organizations like Stand With Crypto are working to ensure that the legal and political landscape evolves in a way that encourages growth, innovation, and investment.

Looking Ahead: What’s Next for Crypto in Australia?

Looking ahead, the future of crypto in Australia will depend on the success of advocacy efforts like Stand With Crypto. As political support for the sector grows and pressure mounts for regulatory clarity, the country could be well-positioned to become a leader in the crypto space. However, it will be essential for regulators to strike a balance—creating policies that support innovation while addressing concerns around security and investor protection.

The next few years will be critical as Australia moves toward clearer regulation and continued engagement with the global crypto community. Stand With Crypto’s expansion represents a vital first step in bringing about the change needed to foster a thriving, well-regulated crypto ecosystem in Australia.

Conclusion: Advocacy Driving Change

Stand With Crypto’s entry into Australia is a powerful move in the ongoing global push for better crypto regulation. By aligning grassroots efforts with top-down advocacy, the group aims to shift public perception and create an environment where blockchain technology and cryptocurrencies can thrive. As more political leaders and stakeholders join the conversation, there is hope that Australia will become a more welcoming destination for crypto innovation, helping to drive the broader industry's evolution forward.

November 2024, Cryptoniteuae

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