Australia proposes a private bill to speed up crypto regulation

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Key takeaways:

  • A bill introducing regulatory standards for the Australian cryptocurrency market has been presented by Senator Andrew Bragg.
  • The Bill covers licensing for exchanges, custody rules, and stablecoins. Australia can promote digital assets while safeguarding users of digital assets. 

Australia continues to make significant progress towards its pledged aim of establishing a crypto-friendly atmosphere that encourages innovation. A bill introducing regulatory standards for the Australian cryptocurrency market has been presented by Senator Andrew Bragg.

The Australian Parliament has received a new measure that proposes rules for the country’s cryptocurrency service providers. Australian regulation of digital assets, in the senator’s opinion, is falling behind. The Digital Assets (Market Regulation) Bill 2023, a Private Senator’s Bill, was presented as a result. 

Additionally, the measure specifies a number of obligations and demands for exchanges, custody providers, and stablecoin issuers. These can include minimal capital or reserve standards, customer fund division, documenting on holdings, auditing, assurance, and transparency agreements, among other things.

Australia has long been a leader in the cryptocurrency industry. For instance, by raising concerns about FTX prior to its collapse, Australian regulators demonstrated their active participation in the market. 

National Australia Bank recently revealed the successful completion of the first-ever cross-border stablecoin transaction.

Owing to the Digital Assets Bill, Australia will rejoin the regulatory arms race . Consumers will be protected, and spending will increase. 

If the bill is approved, anyone or any organisation wishing to run a cryptocurrency exchange would need to possess either an Australian Securities and Investments Commission licence or a foreign licence.

In his additional information for the private bill’s submission, Bragg criticised the current Labor administration for failing to implement the 12 suggestions for cryptocurrency regulation made by the Senate Select Committee on Australia as a Technology and Financial Centre in October 2021.

Digital asset exchange, Coinbase is the latest business to embrace Australia’s friendly crypto environment. The exchange replied to the “token mapping” exercise by the Australian Treasury by stating its support for the establishment of the nation’s regulatory framework.

Token mapping in Australia, which is being hailed as a “world first,” aims to define different digital assets and put them under the jurisdiction of the right regulators nationwide. Although the drill had been scheduled for this year, the actual launch is anticipated for next.

In a consultation paper published, Coinbase believes that an extensive structure should put more emphasis on results than particular rules. It stated that those regulations should strike a compromise among several regulatory goals.

This shows not only that Coinbase can function as a legitimate cryptocurrency exchange in Australia, but also that Australian lawmakers are committed to thoughtfully regulating cryptocurrency businesses and enacting laws that promote the growth of the digital economy as a whole.

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Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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