Federal advisory committee highlights factors for ‘safe’ crypto adoption in Australia
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An Australian Federal advisory committee has suggested four key ways to support the safe adoption for crypto and lessen cyber security threats.
Australia’s Department of Home Affairs released a study this week in which the Cyber Security Industry Advisory Committee provides strategies for the government to accommodate the transforming digital economy.
Specifically, it suggests creating guidelines to “help ensure the safe adoption of cryptocurrencies in Australia”, including:
“Cyber security has to be a key consideration when it comes to the adoption of cryptocurrencies,” reads the report.
The committee recommends the government mandates minimum cyber security standards for crypto exchanges and Australian businesses that hold cryptocurrencies, but that it must be “a shared responsibility”.
“Industry, government, law enforcement [and] regulatory and criminal intelligence agencies need to be properly resourced to meet the demands of the complex digital world,” continues the committee’s recommendations.
Additionally, the advisory suggests focusing on increased public awareness of potential crypto crimes via “specialist training”.
The Aussie government has apparently confirmed it’s working with state and territory governments to equip agencies with the relevant capabilities and bolster police ability to investigate and prosecute cyber criminals, and freeze cryptocurrency “suspected as being proceeds of crime”.
The committee recommends a “follow-the-lead” approach in which Australia would learn and implement international best practices in the crypto space.
“A number of nations are taking significant steps to building cryptocurrency capacity and capability domestically,” reads the report. “Australia should follow the example of countries leading the way, learning from their experiences and coordinating international best practice with respect to cybersecurity in cryptocurrency.”
The advisory committee is also calling for increased transparency around registered crypto exchanges and blockchain-based companies in Australia:
“Educational programs with accurate, consistent messaging will allow investors to better understand both the investment and cybersecurity risks while helping to demystify cryptocurrencies for all Australians.”
Consumer protection and investment promotion are the twin aims of our crypto reforms. https://t.co/5wrlkiGloQ
— Senator Andrew Bragg (@ajamesbragg) March 1, 2022
And finally, the committee also suggests that the government should implement the 12 crypto-regulation recommendations in what’s become known as the “Bragg Report“.
Last year, Liberal senator Andrew Bragg helmed the Senate Select Committee on Australia as a Technology and Financial Centre, which issued its final report in October.
Among other things, those recommendations included the introduction of a market licensing regime for digital currency exchanges and a new custody and depository regime for businesses holding crypto assets.
“The Federal Government’s implementation of The Bragg Report recommendations will play a key role in creating an environment of increased transparency, building consumer confidence into the future,” reads the Cyber Security Industry Advisory Committee study.