Australian senator introduces private bill to expedite crypto regulation

A caller measure has been introduced to the Australian parliament proposing regulations for the proviso of cryptocurrency services successful the country.

Senator Andrew Bragg submitted a backstage senators' measure titled Digital Assets Bill 2023 to ‘protect consumers and beforehand investors’, which includes regulatory recommendations for stablecoins, licensing of exchanges and custody requirements.

Proposed regulatory changes are typically introduced by Australian ministers. However, arsenic the Parliamentary Education Office stipulates, members of parliament tin present backstage members' oregon backstage senators' bills, which tin instrumentality months oregon years to walk done parliament.

Bragg provided further accusation for the submission of the backstage bill, hitting retired astatine the existent Labor authorities for not pursuing done connected 12 recommendations relating to cryptocurrency regularisation introduced by the Senate Select Committee connected Australia arsenic a Technology and Financial Centre successful October 2021.

The legislator besides added that Australian consumers had been near exposed to industry-wide events similar the illness of FTX by the inaction of the Australian authorities to supply regulatory clarity to the sector.

“Australia tin beryllium a integer plus hub whilst protecting integer plus consumers. But we indispensable enactment now.”

The enactment looks to supply a regulatory model for cryptocurrency exchanges, custody services and stablecoin issuers which some protects consumers and promotes investment.

It besides looks to supply guidelines for the reporting of accusation by authorized deposit-taking institutions (ADIs) for the issuance and power of cardinal slope integer currency (CBDC).

Related: Australia introduces classification for crypto assets

If passed, the measure would necessitate a idiosyncratic oregon concern to clasp a licence granted by the Australian Securities and Investments Commission (ASIC) oregon a overseas licence to run a cryptocurrency exchange. This would besides use to cryptocurrency custody services and stablecoin issuers successful Australia.

The measure besides sets retired a assortment of obligations and requirements for exchanges, custody services and stablecoin issuers. This ranges from superior oregon minimum reserve requirements, segregation of lawsuit funds, reporting connected lawsuit holdings arsenic good arsenic auditing, assurance and disclosure arrangements.

Public consultation is presently ongoing successful Australia implicit the classification of cryptocurrencies and assorted integer plus tokens, services and platforms. The ‘token mapping’ consultation insubstantial was released successful February, outlining basal definitions for the cryptocurrency sector. 

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