Blockchain Australia CEO Slams U.S. for Adopting Regulation by Enforcement Approach

The newly appointed chief executive of Blockchain Australia, Simon Callaghan, anticipates that the Federal Government will replicate the regulatory action taken by the UK, Hong Kong, and Singapore to enforce crypto regulation. Callaghan predicts that the federal government will fail to adopt the crypto regulatory regime adopted by the U.S.

During his appointment, Callaghan was to ensure that the rule-making process was fair and equitable, unlike the U.S. Securities and Exchange Commission (SEC) approach. The SEC recently made headlines after suing high-profile crypto firms and listing 68 digital assets as security.

Overview of Blockchain Australia CEO Roles and Responsibilities 

He added that the SEC enforcement action resembles an action caused by a hammer striking a nail. Callaghan considers SEC regulatory approach unsuitable for Australia.

Speaking at the Blockchain Week event, Callaghan confirmed to ascend to Blockchain Australia’s chief executive officer position. In a subsequent report dated June 26, Callaghan revealed why he left his previous role at Cambridge University, where he worked as digital assets program lead.

Before then, Callaghan had worked for the bankrupt lending platform Celsius as Asia lead for crypto leaders. He has also worked for Vauld, among other best-performing tech firms.

It was reported that Callaghan would succeed Steve Wall, who stepped down in July 2022 following a competing interest with the regulators. Later the Blockchain Australia CEO post was advertised by Laura Mercurio, outlining the core duties of the executive. Mercurio later replicated Wall’s move, leaving the firm without an advocate.

Blockchain Australia Appoints New CEO

According to Mercurio post Callaghan is expected to represent an association containing around 112 members, such as Binance, Circle, Mastercard, and Ripple. Recently the members of the association have been pushing for clear regulations. In a statement, the members demanded for clear goalpost to run their business compliantly.

Callaghan noted that the Australian government had demonstrated a positive stance towards crypto, unlike the U.S. He noted that the Australian Treasury plans to engage in token mapping, which involves exploring ways to group the digital asset before implementing the new rules in 2024.

Callaghan applauded the efforts made by the Australian government to draft the crypto regulation. He mentioned that some delays in implementing the rules were hampered by the regulator’s action to pursue a suitable approach to supervise the crypto space.

Callaghan highlighted that the Australian regulators had been motivated by Singapore, the U.K., and Hong Kong to develop a regulatory framework that boosts innovation and safeguards the consumer from exploitation.

He added that the crypto space had provided the public with numerous benefits of technology and innovation and created employment opportunities. Callaghan mentioned that the community would garner massive benefits from the financial sector with the development of crypto regulation.

In June, it was reported that the central bank of Hong Kong urged significant banks in the region to provide services to crypto exchanges as the country strives to attract many foreign and local investors.

On the other hand, the Hong Kong Monetary Authority has been requesting the banks to work closely with the crypto firms.

Suitability of the Australian Crypto Regulation

Callaghan considered Hong Kong regulatory approach as suitable. In an earlier statement, the Australian Senate Committee urged crypto firms to leverage their position to rule out the debanking decisions. The committee requested banks to conduct due diligence checks before adopting some of the restrictions implemented by the Australian authority,

A few days ago, two banks in Australia announced plans to suspend certain payments made to crypto exchanges due to increased financial crimes such as scams and fraudulent schemes.

He mentioned that labeling almost every action as a crypto scam was impossible. Callaghan underscored the need to check on the data provided before venturing into crypto. He confirmed that he would be engaged in advanced talks with banks in the coming weeks, guiding the banks to understand their roles and duties.

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