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LUNA tanked 99.7% in 2022. The entire crypto ecosystem crashed in a couple of days. The result was that users either ended up losing their money or had to incur heavy losses. This triggered regulators across the globe to start drafting stricter laws for crypto ventures. This has been taken with mixed reactions by exchange platforms. A logical argument is that users’ safety is the utmost priority, and hence, it only makes sense for relevant authorities to take preventive measures. Another argument is that ventures are sticking their heads out despite being warned about the pole.
Here’s the explanation for the latter part. Crypto ventures should have expected things to go south and corrective measures to be followed after LUNA crashed by such a huge value. Blockchain Australia Chief Executive Officer, Simon Callaghan, is of the belief that corrective measures are a way to kill the crypto industry in the country.
Making things worse for them are the banks that have decided to pull the plug on them. Banking services are taking up a protective shield to make sure that their customers are well aware of the current situation. Simon, meanwhile, has warned the Australian Government of catastrophic effects that could happen if measures are implemented against the current tide.
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For starters, Simon believes that most of the crypto ventures will move offshore. There are other regions that would be happy to host them. This includes Singapore and the UAE, among others. Assuming crypto ventures do decide to shift, it would take them months to make it happen and months to begin operating.
Next, Australia could miss out on the potential industry strength of billions of dollars. Simon interacts with the media, highlighting that they were fighting for the future of the industry.
It was not specific if the fight was particularly in Australia, but one can safely assume that their Australian operations are well under threat. The CEO of Blockchain Australia is currently reaching out to regulators, lenders, and lawmakers to try and convince them that the crypto industry is not as bad as it sounds or is often made to look like. It is understood that the reps will stick to facts and figures instead of getting moved by sentiments.
Not that Australia has not benefited from cryptocurrency. The country saw approximately 11,600 residents get employed here, also generating somewhat $2.1 billion for its economy. The figure dates back to 2021, with a future estimate of 200k residents and a $68.4 billion contribution.
The interest of residents cannot be missed. This is evident from the fact that 300k customers traded digital assets worth $4 billion AUD in 2017, the year when cryptocurrencies achieved full legal status. There has also been an increase in the number of tokens available on the board. It was 312 in February 2020, jumping to 400 as of the most recent figure by AUSTRAC.
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Simon is simultaneously worried about losing their businesses and jobs for the people employed. Businesses would move overseas, Simon said at the time of suggesting the Government adopt a holistic approach.
