- Australian Senator Andrew Bragg published a bill on Monday aimed at regulating cryptocurrency exchanges, as well as stablecoins and digital yuan.
- The bill requires companies to provide operating licenses for trading or managing digital assets.
- He questions the benefits of the Australian CBDC and believes the country is not ready to issue it.
Stablecoins, Chinese digital yuan, cryptocurrency trading via cryptocurrency exchanges and other DeFi firms could be regulated very soon in Australia if the bill introduced by Senator Andrew Bragg on Monday is approved by the Senate and government.
“Australia must keep pace with the digital asset race,” the liberal legislator said on Twitter (NYSE:) which is why he believes this bill should be passed “to protect consumers, boost investment, and protect our interests.”
The Digital Assets (Market Regulation) Act 2022 requires companies that trade or manage digital assets to apply for licenses. This includes cryptocurrency exchanges and other companies that provide custody services for digital assets.
The bill also requires licenses for Australian stablecoin issuers. Similarly, the bill sets disclosure requirements for platforms that facilitate trade with e-Yuan, China’s central bank digital currency, in the country.
Criticism of the Labor government
In a statement published on Monday, September 19, Bragg claimed that the Labor government considers cryptocurrency to be a “scam” and is therefore starting its business from scratch.
He said that if digital asset regulation was “driven by vested interests in group law firms or pension funds,” then surely Secretary Stephen Jones would have introduced a bill on the matter now. According to the legislator, the lack of legislation regarding the cryptocurrency industry in the country leaves Australia behind the issue. But, in addition to this, consumers are not protected and the promotion of investments in cryptocurrencies is not encouraged. He fears that many startups in the cryptocurrency industry will leave the country.
Australia must keep pace with the digital asset race: a bill to protect consumers, boost investment, and protect our interests.
– Senator Andrew Bragg (@ajamesbragg) September 18, 2022
on the flip side
- Although Senator Prague is an outspoken supporter of cryptocurrency development and regulation, he does not support the issuance of a digital currency by the Central Bank of Australia to digital currencies.
- He does not support the issuance of a CBDC, at least not at the moment, without legislation first and a “serious program” because the Australian economy is, in his view, highly vulnerable.
- On the other hand, the Reserve Bank of Australia has called for stablecoin regulation before introducing a central bank digital currency.
Why should you care
Bragg noted that the bill’s primary goal is to provide the country with an “effective regulatory framework” on the use and trading of cryptocurrencies. But, in addition, it sets guidelines for some banks to provide periodic reports on the use and availability of the Chinese digital yuan.
The senator believes that issuing a digital currency will not benefit Australia, because central bank digital currencies have a privacy issue. However, he believes that the Australian government should make some proposals about other primary digital currencies circulating in the country.
Senator Andrew Bragg’s bill will be on public debate through October 31, 2022.
The Australian government is known to be working on a set of “crypto-asset reforms” aimed at improving cryptocurrency trading and related services provided.
You can also read the following articles related to cryptocurrency regulation in Australia:
(BTC) and Beyond: Australia Begins Mapping Crypto
Australian Minister Says DeFi and Blockchain Technology Offer Incredible Opportunities