By George Ward
Senator Andrew Bragg – a leading voice on financial technology and digital assets in Australia – has proposed a new bill that could expedite cryptocurrency regulation in the country. The bill, if passed, would provide a framework for regulating cryptocurrencies in Australia.
The proposed bill is part of a more considerable effort by Senator Bragg to ensure that the Australian government keeps pace with the rapidly changing cryptocurrency landscape.
The Game-Changing Digital Assets Bill
Senator Andrew Bragg has proposed the Digital Assets (Market Regulation) Bill 2023 to the Australian parliament. This bill aims to secure customers’ rights and bolster investors by introducing rules for cryptocurrency services within the country.
This legislation would impose regulations on stablecoins, necessitate licensing of cryptocurrency exchanges, and establish custody requirements. Australian ministers usually bring forward proposed regulatory modifications.
Nevertheless, per the Parliamentary Education Office, individual members or senators of parliament can put forth private members’ or private senators’ bills, which can take a prolonged period to proceed through parliament.
Bragg provided more details regarding the submission of the private bill. He also criticized the present Labor government for not taking action on 12 suggestions concerning cryptocurrency regulation put forward by the Senate Select Committee on Australia as a Technology and Financial Centre in October 2021.
The senator proclaimed that the lack of action from the Australian government to offer regulatory clarity in the sector had left people in Australia exposed to incidents like the breakdown of FTX. He argued that with swift action, Australia could become a hub for digital assets while still granting consumers protection.
This legislation intends to create a regulatory system for custody services cryptocurrency exchanges, protecting consumers and stablecoin issuers and stimulating investment. Furthermore, it will proffer instructions for reporting information by accredited banks for issuing and managing a CBDC.
Australia Set To Make Crypto Exchange Licensing Mandatory
If approved, the legislation would necessitate any individual or business that engages in cryptocurrency exchange, storage of digital assets (cryptocurrency custody services), or stablecoin issuance in Australia to hold a license granted by the Australian Securities and Investments Commission or a foreign license.
This bill specifies various obligations and demands for exchanges, custody providers, and creators of stablecoins. These include reserve or capital requirements, customer holdings data, customer funds divided and held separately, audits, disclosure, and assurance processes.
Meanwhile, the Australian government is conducting a public opinion poll to identify how cryptocurrencies and digital asset tokens, services, and platforms should be classified. The “token mapping” survey paper, which explains fundamental definitions of the cryptocurrency industry, was released in February.
The proposed bill is a positive step towards creating a regulatory framework for cryptocurrency in Australia. It is a sign that the Australian government is taking the issue of crypto regulation seriously and is committed to protecting investors while encouraging innovation in the industry.