Australia’s crypto industry has expressed positivity after the recently reelected government named pro-crypto politician Andrew Charlton as assistant minister for the digital economy, artificial intelligence and other emerging technologies.
Prime Minister Anthony Albanese told reporters in Canberra during a May 12 press conference that Charlton would be the new assistant minister for science, technology and the digital economy, working with Tim Ayres, the minister for industry and innovation.
Ayres and Charlton will administer policies and programs promoting advancements in emerging technologies, science, technology, innovation and the digital economy, according to Albanese.
Charlton has shown strong support for the industry in the past. During a speech to parliament last November, he pushed for a balanced regulatory framework that encouraged industry growth.
Cryptocurrency is shaping the future of finance. Governments must support a balanced framework that encourages growth while ensuring security and trust. Let’s embrace the opportunities of a digital economy! #Cryptocurrency#Innovation@DECAustraliapic.twitter.com/av8L2DA72g
Speaking to Cointelegraph, Jason Titman, CEO of Australian crypto exchange Swyftx, said Charlton’s appointment is “unequivocally good news for crypto in Australia,” and he expects the “blockchain industry is cheering.”
“Andrew has a deep understanding of blockchain, coupled with a genuine belief in its potential to support the Australian economy,” Titman said.
Along with the new assistant treasurer, Daniel Mulino, Titman says he hopes Charlton “ fast tracks legislation around digital assets,” because the industry has been waiting for “six or seven years for legislative clarity.”
Australian crypto industry continues to grow
Vakul Talwar, head of the Australian arm of crypto exchange Crypto.com, said in a statement sent to Cointelegraph that Charlton’s appointment is a sign of the growing importance of the digital economy.
Since the previous election in 2022, Talwar says the “industry has grown significantly,” and it’s important in the current term of Parliament to “ensure that as the digital economy continues to merge its way into traditional finance, appropriate regulations are in place.”
Around 31% of Australian adults own or have owned crypto, which is roughly 6.2 million people, April 4 data from crypto exchange Independent Reserve shows, up from 28% last year.
Roughly 6.2 million out of Australia’s more than 26 million population have owned or still own crypto. Source: Independent Reserve
Edward Carroll, head of global markets and corporate finance at Australian crypto platform MHC Digital Group, said that Charlton has long recognized the importance of fostering a constructive and innovative financial ecosystem.
“His specific support for digital assets and recognition of blockchain technology’s transformative potential, alongside the need to regulate it quickly and appropriately, should help Australia keep pace with the rapidly evolving global regulatory landscape,” Carroll said.
At the same time, Damian Kassabgi, CEO of industry advocacy group Tech Council of Australia, said in a May 12 statement that the addition of “digital economy” to the ministry position is a “strong signal of the Government’s commitment to this critical area of future growth for jobs.”
The reelected center-left Labor Party proposed a new crypto framework on March 21, regulating exchanges under existing financial services laws and has promised to tackle debanking.
Chancellor Rachel Reeves has dodged calls from her predecessor Anneliese Dodds for a wealth tax to be considered ahead of this autumn’s budget.
When Sir Keir Starmer became Labour leader in 2020, Ms Dodds was his first pick for shadow chancellor. However, she did not last long and was replaced by Ms Reeves, who then got the government job after last year’s election win.
She said: “I would hope the Treasury is considering that kind of evidence, as well as other changes that have been put forward.”
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‘Rachel Reeves would hate what you just said’
Asked today if about Ms Dodds’ intervention, Ms Reeves said: “Decisions around tax are decisions that are made at a budget and we’ll make those decisions in the appropriate way, but the number-one priority of this government is to grow the economy.
“And that means bringing more investment into Britain, creating more good jobs paying decent wages here in Britain.
Listen here to hear Ms Dodds’ full comments:
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“We’ve got to get the balance right on taxation because we want that investment, we want those jobs to come here.
“That’s why we’re reforming the planning system, secured three trade deals in the first year of this Labour government, cutting back on unnecessary regulation, and reforming our pension system to unlock money for businesses to be able to invest here in the UK.”
The government’s financial position is stretched ahead of the next budget, due at the end of autumn.
Ms Reeves has committed herself to not changing her fiscal rules, leaving little wiggle room to avoid tax rises or spending cuts.
This is due to the government’s inability to save money through policies like welfare reform, which were gutted due to a rebellion of backbench Labour MPs.
Last week, Business Secretary Jonathan Reynolds branded the suggestion of a wealth tax “daft” – but he has less influence over the writing of the budget than the chancellor.
Meanwhile, reports from the Daily Telegraph suggested that Deputy Prime Minister Angela Rayner backed increasing taxes, including reinstating the pensions lifetime allowance and a higher corporation tax level for banks.
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