Bragg sounds fintech alarm in push for clearer crypto rules

NSW Liberal Senator Andrew Bragg has warned Australia’s fintech sector needs a clearer government policy framework on digital assets including cryptocurrencies to stop local startups moving overseas permanently.

Senator Bragg, who chairs a committee on Australia as a technology and financial centre, will on Tuesday say Australia does not have a legitimate regulatory framework for blockchain, which is a “distributed ledger” technology for the secure storage of data. Blockchain technology underpins bitcoin, which fell sharply over the weekend amid fears of government regulation.

Senator Bragg will say the policy uncertainty is creating problems for the fintech sector because banks are reluctant to deal with cryptocurrencies, in part because law enforcement agencies are also “flying blind” in distinguishing legitimate and illegitimate uses of cryptocurrency.

“The absence of a legitimate regulatory framework for blockchain has made it harder to effectively target pernicious uses of these products. In some cases, Australian banks are avoiding dealings with crypto assets altogether,” Senator Bragg will say.

It has also meant fintech firms are being “de-banked,” and some cryptocurrency start-ups are heading overseas.

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Source: Liberal senator Andrew Bragg sounds fintech alarm in push for clearer crypto rules