Ripple’s global head of policy has voiced concerns over a section of the draft digital assets legislation proposed by the Treasury, describing the current framework as a potential threat to the survival of emerging crypto companies. The legislation, which aims to regulate “digital asset platforms” and “tokenised custody platforms,” has raised alarms due to its tight timeline for compliance.
Rahul Advani highlighted that the legislation does not provide adequate time for crypto businesses to apply for and secure the newly mandated Australian Financial Services Licences (AFSLs). He emphasized that the process of obtaining these licenses can exceed 18 months, suggesting that the current framework could result in many enterprises facing premature closure.
Advani urged for a more detailed and achievable transition roadmap, calling for an extension of the timeline to allow businesses sufficient opportunity to obtain necessary licenses, establish compliance measures, and access the capital essential for their operations. “Without this, many businesses may be forced to shut down abruptly, disrupting the market,” he warned.
The exposure draft was released by the Treasury last month and is viewed by many in the industry as a significant step toward the regulation of digital assets in Australia. However, critics like Advani stress that without a more accommodating approach, the legislation risks undermining the very businesses it aims to regulate.
