Australian bank authorities discuss crypto laws with Coinbase

The Reserve Bank of Australia and the Australian Treasury have had secret talks with Coinbase executives to explore the future of crypto legislation in Australia.

Last week, Coinbase met with the RBA’s Payments Policy and Financial Stability departments “as part of the Bank’s regular contact with industry,” according to a spokesman for the Reserve Bank of Australia (RBA), confirming previous reports of these private discussions.

Tom Duff Gordon, vice president of international policy at Coinbase, was said to have gone to Canberra and Sydney for the discussions with Treasury.

Gordon said that the government’s attempts to map tokens were discussed, and Coinbase “offered views on global best practices, including licensing and custody.”

The Australian Treasury’s token mapping initiative, which was unveiled on August 22, aims to classify digital assets so that they may be integrated into current legal frameworks.

The Treasury issued a consultation document on February 3 and solicited opinions from the cryptocurrency sector.

Gordon lauded the Treasury’s efforts, remarking, “The Australian Treasury teams continue to surprise us with their high level of expertise and active participation.” He also added:

“The Australian Treasury’s token mapping exercise provides one of the most detailed and thoughtful papers we have encountered on the topic, setting a strong foundation for their forthcoming draft rules for crypto exchanges and custodians.”

Gordon wished to see the guidelines “later this year” and praised “the Treasury’s exhaustive foundation.”

In contrast, Coinbase co-founder and CEO Brian Armstrong has been critical of the United States’ approach to crypto regulation, echoing accusations that the Securities and Exchange Commission (SEC) is “regulating by enforcement” and claiming that the SEC wants firms to register with them despite there being no way to do so.

Through its request under the Freedom of Information Act, the Australian Financial Review has received documents indicating that crypto legislation in Australia might be delayed until 2024.

But formal proposals to the cabinet are not anticipated until late in the year.

Coinbase launched in Australia on October 4, 2022, and at the time, Coinbase Vice President of International and Business Development Nana Murugesan stressed that the exchange was “quite satisfied with the open door that we’ve gotten in Canberra and with other politicians.”