Blockchain Australia, the nation’s authoritative body on crypto, introduces a new CEO committed to accelerating the process of crypto regulation in the country.
Simon Callaghan, Blockchain Australia’s recently appointed CEO, expresses a hope that the Australian government will look to countries like the UK, Hong Kong, and Singapore for cues on crypto regulation, intentionally sidestepping the approach of the United States.
Callaghan’s mission in his new role is to guide the development of crypto regulations in Australia while evading strategies similar to those of the U.S. Securities and Exchange Commission — which is currently pursuing legal actions against the globe’s two largest crypto exchanges and has classified at least 68 tokens as securities.
“The approach of ‘regulation by enforcement,’ or treating every situation as a nail when all you have is a hammer, is not the strategy Australia should be adopting,” says Callaghan.
On June 26, Callaghan was officially announced as the new CEO of the top industry body. His background includes leading the digital assets program for Cambridge University and co-founding the corporate service provider, MOOPS Tech.
Callaghan’s resume also includes his time as the Asia lead for crypto lender Celsius, although he exited months before the company’s downfall. His tenure at another crypto lender, Vauld, was brief.
Callaghan’s succession follows nearly a year of uncertainty after the exit of previous CEO and industry champion Steve Vallas in July 2022. Laura Mercurio briefly occupied the CEO role in September of the same year but quickly left due to differing visions, leaving Australia’s blockchain industry without a representative for the majority of the year.
Callaghan’s duty in his new position is to advocate for the association’s 112 members, including big names like Binance Australia, Circle, Ripple, and Mastercard, who are all pushing for clearer regulation. He adds, “Knowing where the goalposts are is vital for people to run their businesses, develop their technologies, and create jobs.”
Callaghan points out to Cointelegraph that the Australian government’s stance on crypto hasn’t been as stringent as the American regulators and the Biden administration.
Australia’s Treasury currently has a “token mapping exercise” in progress to figure out the classification of various digital assets ahead of potential legislation, not expected until at least 2024.
Callaghan believes the government’s lack of a solid position could indicate their preference for a considered approach, which he deems a beneficial strategy.
He also hopes that legislators will learn from Singapore, Hong Kong, and the UK, who are all developing regulatory frameworks that balance innovation with consumer protection. “These countries recognize the value in the technology, innovation, and job creation potential, as well as the benefits to the broader financial sector,” he noted.
Reports from earlier in June suggest the Hong Kong central bank has been urging major banks to accept crypto exchanges as clients, part of the city’s strategy to attract global crypto firms and investors.
Callaghan expresses approval of this approach, “The fact that Hong Kong monetary authorities are urging banks to collaborate with the sector is, in my opinion, the right path.”
In 2021, an Australian Senate committee report on digital assets suggested that crypto firms should be able to dispute debanking decisions and that banks should perform due diligence on firms rather than enforce blanket bans on the sector.
However, two leading Australian banks have recently applied pauses, limits, and complete blocks on certain payments to local crypto exchanges, citing the increasing risk of financial scams.
Callaghan asserts that it is not justifiable to label all aspects of crypto as a scam, and stresses the importance of data analysis. He reveals that he’s already set up meetings with these banks in the upcoming weeks to better understand their stance.