The importance of regulated crypto exchanges gets stronger as Australia sees massive opportunity
Regulation for cryptocurrency exchanges is absolutely vital.
It has been a key tenet of CM’s vision since the company was established, and stands CoinMetro out among cryptocurrency venues and exchanges in that it was established by a series of long-term financial markets professionals with Kevin Murcko, one of the electronic derivatives industry’s leading figures at the helm as CEO.
From the outset, it was clear that regulated exchanges are the way forward for all things relating to cryptocurrency and access to blockchain based protocols, and that regulation among cryptocurrency and its infrastructure providers including exchanges would be the only way to foment sustainability for the growth and expansion of cryptocurrency and the decentralized finance (DeFi) world.
This was most definitely the correct approach and this year we have seen the massive rally that the main cryptocurrencies experienced just after the United States Securities and Exchange Commission (SEC) began to display their advanced documentation in Senate meetings led by veteran electronic trading regulatory leader Gary Gensler who is now chair of the SEC.
This documentation showed a clear and well organized path toward regulating cryptocurrency and the venues that give access to it, and providing a tax structure for all areas of the cryptocurrency ecosystem. Subsequently, Bitcoin values rose so sharply that they approached new all-time highs, despite the flash crash just two months earlier in May this year when Elon Musk made his infamous tweet which wiped $700 million from the value of five popular cryptocurrencies.
This regulatory discussion and supporting documentation along with the favorable reception to it demonstrated by cryptocurrency investors, to which the incredible rise in values of the major cryptocurrencies was testiment.
Now, Australia, one of the world centers for commodities trading and a nation with a well organized financial markets regulatory structure is looking to regulate cryptocurrency.
Yesterday, during a public speech, Australia’s federal treasurer Josh Frydenberg said that he expects to deliver a “comprehensive payments and crypto-asset reform plan” to boost innovation and consumer uptake of digital technologies.
As early as 2022, Australia’s authorities will concentrate on consult on potential reforms including a central bank digital currency, a licencing framework for digital currency exchanges, and fixing the problem of fintech de-banking which is a common issue in which traditional banks refuse to give services to certain business sectors or individuals.
The cryptocurrency reform proposal seeks to ensure that consumers would be allowed to buy and sell assets in a regulated environment, with new rules for businesses that hold crypto assets on behalf of consumers.
CoinMetro is ahead of the curve with this, as the company has a fully licensed cryptocurrency exchange for access to every crypto asset available worldwide, our own native token, XCM, and a regulated payments processor with an Electronic Money Institution (EMI) license, making CoinMetro the de facto multi-faceted venue for accessing all areas of cryptocurrency including trading, storing value, payment processing, staking new tokens and utilization of smart contracts for all areas of business or private needs.
CoinMetro also has a business account, which offers small to medium sized businesses across the world to hold their treasury in cryptocurrency under a fully regulated environment.
Australia has always been a major area for cryptocurrency investment, and the market is very much open, with the nation’s Commonwealth bank having announced last month that it would allow customers to buy and sell cryptocurrencies on its platforms.
Mr Frydenberg issued an address which stated that there will be proposals to address “the ambiguity that can exist about the regulatory and tax treatment of crypto assets and new payment methods” which again alludes toward a full framework of regulation.
He agrees with the train of thought among professionals in the cryptocurrency arena that it is “clear is that if we embrace these developments, Australia has an enormous opportunity to capitalise on the convergence between finance and technology.”
As the most advanced financial markets and fintech centers in the world look toward creating a regulatory framework to give greater sustainability to the cryptocurrency industry and allow the infinite development of blockchain projects that will power the business and social world of the future.
Regulation is the way forward.