Australian senator is drafting a bill aimed at regulating stablecoin and digital yuan

Liberal Australian Senator Andrew Bragg has passed a new bill aimed at cracking down on digital asset and stablecoin exchanges and China central bank digital currency, e-yuan.

In a statement issued on September 18, Senator Bragg advertiser that “Australia must keep pace with the global race to regulate digital assets” as “it is imperative that Parliament lead law reform” on the issue.

The new bill, entitled Digital Assets (Market Regulation) Act 2022, calls for licenses to be introduced for digital asset exchanges, digital asset custody services, and stablecoin issuers, as well as disclosure requirements for e-Yuan facilitators in Australia.

Senator Bragg told Cointelegraph that Australia is “absolutely vulnerable, as an economy, and that is one of the reasons why we need a serious program of turbulence management, and risk management, that stems from developing a central bank digital currency.”

Senator Bragg said the intent of this act was specifically to provide an “effective regulatory framework” as well as to provide “reporting of information by certain banks that facilitate the use or availability of the digital yuan in Australia” and to provide “additional duties” to governing bodies in relation to this law and” Regulating activities related to digital assets and the digital yuan.”

Senator Bragg said this is not an “accusatory position to take” it’s just “preparing and gathering information” that he thinks is entirely “reasonable.”

Senator Prague said Australia would not benefit from having a commercial CBD because “privacy issues cannot be managed”, but that it was important that the Australian government “put something on the table” to manage other CBDCs being offered, as he reiterated that the governor from the Reserve Bank The Australian “speaks before he says there should be regulation on stablecoins.”

Consultation on the draft law remains open until October 31, 2022 and welcomes “community comments”.

Andrew BraggAustralian politician, pro-cryptocurrencyHe has been an outspoken advocate of cryptocurrency since his election to the Senate in 2019. Senator Bragg has been pushing for a clear regulatory framework for digital assets and crypto companies since 2021, in an effort to prevent local startups from moving abroad.

Senator Bragg noted that he “chaired the Digital Asset Committee” with “no firm vision at the time” and “conducted an investigation into these matters” as well as informing himself of “the risks and opportunities.”

Related: Municipal Bank of China issues first-ever digital yuan loan using intellectual property as collateral

Meanwhile, the Australian Labor Government is said to be working on “crypto-asset reforms” to “improve the way the Australian regulatory system manages crypto assets.”

Last month, the Treasury stated that it will “Prioritize token mapping in 2022, which will help determine how crypto assets and related services are regulated. “

Australian Treasurer Jim Chalmers has stated that this symbolic mapping advisory paper “will be released soon” making Australia a leader in space because it “has not been conducted anywhere else in the world”.

The goal is to identify “observable gaps in the regulatory framework,” build “a licensing framework, review innovative regulatory structures, consider custodian obligations for third-party custodians of crypto assets and provide additional consumer safeguards.”