Key takeaways:
- The cryptocurrency legislation proposed by Senator Andrew Bragg has finally received comment from Australia’s Senate Committee on Economics Legislation.
- The dissenting lawmakers suggested expanding the definition of a stablecoin to include certain asset-based tokens.
The cryptocurrency legislation proposed by Senator Andrew Bragg has finally received comment from Australia’s Senate Committee on Economics Legislation.
The Digital Assets (Market Regulation) Bill 2023 is the name of the draft legislation that the committee reviewed and gave its opinion on September 4. The committee advised the Senate not to enact the legislation and suggested that the government conduct further research on the subject instead.
Senators Bragg and Dean Smith presented a more positive assessment of the measure in a dissenting report, urging the Senate to pass it with a few tweaks, excluding nonfungible tokens (NFTs) from the definition of regulated digital assets.
The dissenting lawmakers suggested that the definition of a stablecoin be expanded to include certain asset-based tokens, maybe including the Gold and Silver Standard and the BetaCarbon Token. Additionally, they requested a nine-month transition period rather than the standard three.
With a goal of introducing legislation in early 2024, Bragg and Smith encouraged the Board of Taxation to consider the tax status of digital assets and transactions in Australia in their report.
They noted that the government should fully implement the Council of Financial Regulators’ suggestions for potential policy responses to Australia’s debanking. Previously, the Australian Department of the Treasury acknowledged that the growing practise of banks shutting off services to cryptocurrency companies could have unintended repercussions, such as driving the sector underground. The report by the dissenters says:
“The committee inquiry has demonstrated that the government’s approach to digital asset regulation is hurting Australian consumers and investment,”
The Digital Assets (Market Regulation) Bill 2023, sponsored by Senator Bragg, aims to “protect consumers and promote investors.” It was introduced in March. The proposed legislation offers guidance on stablecoin regulation, exchange license requirements, and custody standards.
The Senate committee took longer than anticipated to release its most recent report. The committee requested an extension of the reporting deadline to August 16, as opposed to its initial aim of providing information on the bill by August 2. The deadline was then postponed until August 25 and then September 4.
