The new draft legislation from Australian Liberal Senator Andrew Bragg targets stablecoins, digital asset exchanges, and China’s e-Yuan, the country’s official digital currency.
According to a statement made by Senator Bragg on September 18, “Australia must keep pace with the global race for regulation on digital assets” because “the parliament must lead legal reform” in this area.
In the new draft law, named Digital Assets (Market Regulation) Bill 2022, licenses are proposed for digital asset exchanges, digital asset custody services, stablecoin issuers, as well as transparency requirements for e-Yuan facilitators in Australia.
Senator Bragg said the objective of this particular act is to provide “an effective regulatory framework” as well as to provide “for the reporting of information by certain banks that facilitate the use or availability of digital Yuan in Australia” and to provide “additional duties” for governing bodies in relation to this act and the “regulation of activities relating to digital assets and digital Yuan.”
Senator Bragg said that this isn’t “an accusatory position to take” it’s simply just being “prepared and gathering information” which he thinks is entirely “reasonable.”
Senator Bragg said that Australia wouldn’t benefit from having a CBDC as “privacy issues cannot be managed,” however it is important that the Australian government “put something on the table” to manage other CBDCs being introduced, as he reiterated that the Governor of The Reserve Bank of Australia has “spoken before saying there needs to be regulation on stablecoins.”
The draft bill consultation is open until 31 October 2022 – Australian
Since being elected as a senator in 2019, Andrew Bragg, a pro-crypto Australian politician, has been a vocal supporter of cryptocurrencies. In an effort to stop local firms from migrating abroad, Senator Bragg has been advocating for a clear regulatory framework for digital assets and cryptocurrency businesses since 2021.
Senator Bragg stated that while “chairing the committee” for digital assets, he “conducted an inquiry into these subjects” and “informed himself about the risks and prospects” with “no fixed perspective at the time.”
To “better the way Australia’s regulatory system regulates crypto assets,” the Australian Labor administration is reportedly working on “crypto asset reforms.”
Treasury officials announced last month that they would “prioritize token mapping work in 2022, which will help establish how crypto assets and related services should be regulated.”
The consultation paper on token mapping, according to Australian Treasurer Jim Chalmers, will “be released soon” and will position Australia as a leader in the field because it “hasn’t been done anywhere else in the world.”
The goal is to find “notable holes in the regulatory environment,” develop a “licensing framework,” examine creative organizational designs, consider the custody responsibilities of third-party custodians of cryptocurrency assets, and increase consumer protections.
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