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.
The liberal legislator He said on Twitter That “Australia must keep pace with the digital asset race,” which is why he believes this law should be passed “to protect consumers, boost investment, and protect our interests.”
The The Digital Assets (Market Regulation) Bill 2022 Defines the obligation of 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 the regulation of digital assets was being “driven by vested interests at class action law firms or superannuation funds,” surely Minister Stephen Jones would have introduced a bill on the matter by 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.
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.