As the fight for regulatory clarity continues, Leigh Travers, CEO of Binance Australia, believes that such a framework will prove that the cryptocurrency industry “maintains a higher standard” than many people think.
Travers spoke to the Cointelegraph on June 14 about the current state of local cryptocurrency regulation and how the opportunities available in the industry are limited by a lack of clarity.
This lack of clarity was cited as the reason why the Commonwealth Bank of Australia (CBA) has postponed indefinitely a pilot program for its cryptocurrency trading services last month. Although there are no rules in the books that directly prohibit CBA’s new services, Australian financial regulators are pushing for a break in consumer protection services.
Without the regulations in place to allow such cryptocurrencies to operate, they will not be able to prove their viability.
From Travers’ point of view, the cryptocurrency industry is already ahead of traditional financial rules for several reasons and he believes that new rules should reflect that. He said he thought “the cryptocurrency industry wants to see regulation” for good reason.
“People in cryptography want to prove that they adhere to higher standards than people actually think they are.
Travers believes that a sensible regulatory framework would make Australians aware of this higher standard. With or without new regulations, blockchain research firm Chainalysis made it clear in January that when it comes to financial crime, “cash is still king.”
Another way that Travers said that the cryptocurrency industry differs from traditional finance is that cryptocurrencies such as BTC and ETH do not easily fit into any current classification for assets or financial products. Cryptocurrency is now classified as an asset in Australia.
Travers said the distinction between cryptography and other assets could widen over time as devolution of power increased, adding that “encryption fits different products”, which only increases the difficulty of managing it responsibly.
Travers called Senator Andrew Bragg one of the front-runners of the liberal side, but local industry could be undefeated for such a champion now that the Labor Party has taken power for the first time in nine years.
He said the former Liberal majority saw the industry “with high-paying jobs and contributions to the economy” as a good thing. He is concerned that work already under way on new regulations will significantly slow down the fact that “labor is not immediately focused on blockchain or cryptocurrency,” which could put domestic industry at a disadvantage.
“This industry calls for clearer regulation because it is difficult to be a service provider in this environment.
Overall, Travers seems to be bullish on the cryptocurrency. He shared his conviction about the future of nonfungible tokens (NFT) and the various roles they could play in society.
In the short term, he acknowledged that the NFTs’ path was still uncertain and would likely continue to be a simple work of art, but that the long-term impact for NFTs was far-reaching for property and intellectual property rights. He said he believed “NFTs will be huge. Intellectual property rights are the reason why Disney is such a huge company. “
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Despite a continued fall in prices as BTC has fallen below its real for the first time since March 2020, Travers is generally bullish in the industry. He pointed out in the short term, “encryption will fight where so much is driven by the national economy,” but that it is only a matter of time before the current changes again for the bulls.
“When the fear of higher interest rates is reduced, cryptocurrencies will catch that wind and create more opportunities when everything has been sold.ADVERTISEMENT
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