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Australia's Blockchain Ecosystem Needs More Support From Regulators, Says Industry Body
Blockchain Australia CEO Steve Vallas believes the country is "well placed" when it comes to blockchain, but financial regulators need to take a more active role.
Updated Sep 14, 2021, 12:11 p.m. Published Feb 15, 2021, 4:42 p.m.
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Australia's blockchain and cryptocurrency companies need more support from the federal government and regulators to boost the confidence of the country's businesses in the technology, according to Steve Vallas, CEO of advocacy group Blockchain Australia.
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Speaking at the Senate Select Committee on Financial Technology and Regulatory Technology on Thursday, Vallas said that Australia has a blockchain "base" from which it can accelerate development and that his organization is now "signaling" that the technology is something people "should be investing in."
Vallas pointed to Australia's lack of blockchain innovation during the last few years. Although he noted that it hadn't harmed the country's cryptocurrency ecosystem, he said, "I think we need more signals from regulators ... that they're willing to discuss this subject matter with people who are well versed in it."
The Senate Committee is assessing the potential for blockchain technology in a commercial and government setting following the country's National Blockchain Roadmap launch in February last year, when the Department of Industry, Science, Energy and Resources set a goal of trying to get businesses to take more advantage of blockchain technology.
See also: US Federal Regulator Says Banks Can Conduct Payments Using Stablecoins
Vallas said some financial authorities in Europe, the U.K. and the U.S. are providing more guidance to businesses looking to use or promote blockchain and digital assets, particularly within the banking sector.
While regulators such as the U.S. Office of the Comptroller of the Currency are saying to banks they can custody crypto assets and should be banking cryptocurrency companies, "Those signals are largely absent from the Australian market," he said.
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WH advisor Patrick Witt: Davos 2026 was ‘turning point’ for global crypto normalization
White House crypto advisor Patrick Witt said stablecoins are the “gateway drug” for global finance and that Washington is racing to deliver regulatory clarity.
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The Context: The Executive Director of the President’s Council for Advisors for Digital Assets sat down for an interview with CoinDesk where he said the recent World Economic Forum in Davos served as a stage for the Trump administration to signal its commitment to normalizing digital assets as a permanent asset class. He said:
- The administration aims to strike a balance between traditional financial incumbents and new crypto entrants through a "symbiosis" where they can coexist and compete.
- Consumers benefit from this competition, positioning the current administration as firmly on the side of technological innovation.
- The President renewed a pledge at the event to establish the United States as the undisputed "crypto capital of the world".
Latest Developments: Regulatory movement is accelerating in Washington with key committee markups scheduled for major digital asset legislation.
- The Senate Agriculture Committee is set to mark up its portion of the market structure bill on Thursday, January 29th at 10:30 AM.
- The Senate Banking Committee has postponed its markup, requiring further mediation on issues like stablecoin rewards and ethics.
- Witt expressed confidence that despite these delays, the legislation will eventually be reconciled and brought to the Senate floor.
Reading Between the Lines: Stablecoins are acting as a "gateway drug" for global business leaders who are beginning to grasp the technology's potential—and its threat.
- Witt observed a cycle where traditional players move from a lack of understanding to fear, and finally to incorporating crypto into their own product offerings.
- While some Senate Republicans worry about stablecoins causing deposit flight from community banks, Witt believes a "smooth glide path" into these future technologies is possible with patience and cooperation.
- “Consumers win when there’s choice,” he said, while also acknowledging concerns from Senate Republicans about community banks and financial stability. The administration, he suggested, sees convergence between crypto and traditional finance as inevitable but wants the transition to be smooth rather than destabilizing to all parties.
- U.S. regulators intend to lead the global regulatory conversation, even if the domestic legislative process results in imperfect "directionally accurate" rules.
What Comes Next: Once the primary market structure bill passes, the administration plans to pivot toward a major crypto tax package.
- Witt suggested there is still a window of opportunity to pass additional digital asset legislation this year before midterms dominate the congressional calendar.
- The administration is also monitoring "developing situations" regarding digital assets potentially seized in national security actions abroad, such as in Venezuela.
- Finally, Witt declined to specifically comment on speculation that Venezuelan enforcement actions may have involved seized digital assets, citing national security sensitivities and an evolving situation, but did add, “There’s a number of folks in the national security apparatus engaged,” in regards to how the Maduro regime was financed.
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