Recently, a new bill has been proposed in the Australian parliament that includes proposals to offer cryptocurrency services within the country.
Bill with recommendations has been submitted
Senator Andrew Bragg has introduced a bill, called the Digital Assets (Market Regulation) Bill 2023, with the aim of “protecting consumers and advancing investors.” The bill contains several regulatory recommendations, such as stablecoin regulations, licenses for exchanges, and holds.
In Australia, regulatory changes are typically proposed by ministers, but MPs can also introduce bills from private senators or members, which can sometimes take months or years to pass through parliament.
Bragg has elaborated on his bill and has criticized the current Labor government for failing to follow 12 recommendations regarding cryptocurrency regulation, which were put forward by the Senate Select Committee on Australia as a Technology and Financial Center in October 2021 done.
The Senator has also noted that Australian consumers have been exposed to industry-wide events, such as the collapse of FTX, due to the Australian government’s lack of clear regulation of the industry.
Licenses may be required after adoption of bill
The proposal of a potential new law aims to provide a regulatory framework for cryptocurrency exchanges, custodian services and stablecoin issuers that is said to both protect consumers and promote investment.
In addition, it also appears to provide guidelines for information reporting by authorized depository institutions for the issuance and control of a central bank digital currency.
If the bill passes, individuals or companies wishing to operate a cryptocurrency exchange, as well as cryptocurrency custodian services and stablecoin issuers in Australia, will need to obtain a license from the Australian Securities and Investments Commission or a foreign license.
The bill also establishes various obligations and requirements for stablecoin exchanges, custodians and issuers. These include, finally, capital or minimum reserves, segregation of client funds, reporting on client interests, auditing, insurance and disclosure arrangements.