Leading crypto exchange Cointree welcome Frydenberg’s regulation crackdown
The rapid rise of crypto allocations in Australian investment portfolios has inevitably reached the point of government intervention to secure the sector and better protect Australian consumers, but in contrast to some of its competitors, Australian crypto exchange Cointree believes regulation will be a powerful advantage for the asset class.
Treasurer Josh Frydenberg made the announcement to legislate the “largest reforms to our payments systems in a quarter of a century” last week, following the final report published in October by Senate Select Committee on Financial Technology and Regulatory Technology, which highlighted the need for stronger regulation on cryptocurrency and digital assets.
Australia’s leading cryptocurrency marketplace and crypto exchange, Cointree, is thrilled at the prospect of cryptocurrency finally having a tighter regulatory framework to support the strong performance experienced over the past 18 months and provide certainty to financial technology providers.
Cointree CEO Shane Stevenson said, “While we understand some investors will prefer the ‘wild west’ approach to regulation, it is our opinion that a poorly regulated market brings risk and is ultimately a barrier to wealth generation.
“This interest from government in implementing a more comprehensive and modern legislation framework could also bring the added benefit of an overall price increase as more sophisticated investors including institutional and SMSF investors join the asset class in greater volumes,” he said.
The prospect of tighter regulation has been brewing globally for years now, and following the recent collapse of two exchanges, MyCryptoWallet and ACX, the issue of how to better regulate organisations who facilitate or are involved in the trading of crypto can no longer be ignored.
“As a new and lucrative asset class, there have been a number of competitors enter the market in a very short time frame, and as one of the oldest running exchanges who are focussed on educating newcomers to the sector, it is disappointing to see slow responses from governments impacting new crypto investors,” said Stevenson.
“The recent Senate Select Committee published 12 recommendations in its latest report which, if implemented, will result in Cointree and other exchanges requiring a new category of market licence. This allows us to further demonstrate our high level of commitment to customer protection and integrity.
“Customer protection is imperative to us and is one of the main reasons we developed the free education portal, allowing our members and newcomers the opportunity to gain a solid understanding on the asset class, including their tax obligations, mining, and investing using an SMSF among other frequently asked questions.
“Since the conversation around regulation began, Cointree has always supported any movement that will help cement crypto as a legitimate asset class alongside equities, gold and property, and we look forward to hearing the government’s planned strategy for 2022,” he said.