The Home Affairs Department of Australia has announced that there will be a delay in implementing the travel rule for cryptocurrencies. Nevertheless, the department acknowledged that once the travel rule is implemented, it will be a “game changer” for the country.

The crypto travel rule was proposed by the Financial Action Task Force (FAFT). The bureau stated that the travel rule would be implemented until further technology was adopted to help in enforcement.

In a statement issued by Daniel Mossop, the assistant secretary for the Department of Home Affairs before the Australian Senate Committee, there was no technological solution globally to support the rule. “I think it depends on the way that is implemented, so a technological solution that takes a lot of the legwork out of that would be a game-changer,” Mossop added.

Travel Rule to Tackle Terrorism

According to the FAFT, the travel rule was proposed to aid in the battle against terrorism financing. The rule will aid in preventing terrorists and other criminals from accessing funds sent or received via electric platforms.

Crypto regulations in Australia have been advocated for recently by different players on the sector. Nicole Rose, the CEO of Australian Transaction Reports and Analysis Centre (Austrac) stated that the agency was taking a keen interest in developing regulations that will curb money laundering and terrorism financing done through cryptocurrency exchanges.

Australia Journey to Crypto Regulations

The issue of which digital assets are cryptocurrencies has also been raised by regulators in the country. According to Commissioner Cathie Armour, Australia needs to have a clear legal view on cryptocurrencies. “Is it as a separate category that they decide covers all digital assets? Or is it more an identification of which digital asset might fit into the existing categories of financial products better,” she mentioned.

The Australian Department of Home Affairs also stated that other factors needed to be evaluated before the travel rule was implemented. However, the department assured that once all factors are considered and all conditions are met, the travel rule could be adopted in future.

Criminal activities linked to cryptocurrencies in Australia have increased in recent months. Recently, law enforcement authorities, in Victoria seized around $6 million worth of digital assets linked to a dark web drug operation. The authorities who conducted the seizure stated that it was the largest bust in the country involving cryptocurrencies.