The legislation aims to implement regulatory frameworks for stablecoins, licensing for exchanges, and custody protocols to safeguard consumers
Australia may soon establish a thorough regulatory structure for digital assets, following the introduction of the Digital Assets (Market Regulation) Bill 2023 by Senator Andrew Bragg. This private senator’s bill puts forth regulatory proposals regarding stablecoins, exchange licensing, and custody requirements, all aimed at safeguarding consumers and encouraging investment in the nation’s cryptocurrency market.
Senator Bragg has expressed his discontent with the current Labor government’s failure to implement 12 recommendations about cryptocurrency regulation, initially proposed by the Senate Select Committee on Australia as a Technology and Financial Centre in October 2021. He argues that the government’s inaction has left Australian consumers vulnerable to issues like the collapse of FTX.
The Digital Assets (Market Regulation) Bill 2023 outlines various responsibilities and requirements for exchanges, custody services, and stablecoin issuers, including capital or minimum reserve standards, customer holdings reporting, and disclosure requirements. Moreover, it mandates that any individual or entity wishing to operate a cryptocurrency exchange, custody service, or stablecoin issuance in Australia must secure a license from the Australian Securities and Investments Commission or an equivalent foreign license.
If enacted, the bill would create a definitive regulatory framework for cryptocurrency exchanges, custody services, and stablecoin issuers, while ensuring consumer protection and fostering investment in Australia’s burgeoning digital assets market. The proposed changes aim to supply a regulatory structure for these sectors within the Australian market.
Unlike typical regulatory changes introduced by Australian ministers, private members’ or private senators’ bills can be initiated by members of parliament and may take a protracted period to advance through legislative processes. As a result, it could be some time before the Digital Assets (Market Regulation) Bill 2023 becomes law.
Currently, Australia is conducting public consultations concerning the categorization of cryptocurrencies and various digital asset tokens, services, and platforms. The “token mapping” consultation document was published in February, providing foundational definitions for the cryptocurrency sector. Senator Bragg’s bill represents a substantial move toward regulating the cryptocurrency landscape in Australia while ensuring consumer protection in the digital asset sphere.
In summary, the introduction of the Digital Assets (Market Regulation) Bill 2023 by Senator Andrew Bragg marks a significant step forward for the regulation of digital assets in Australia. The bill delineates various responsibilities and requirements for exchanges, custody services, and stablecoin issuers, with consumer protection and investment promotion as its core objectives. If successful, it would establish a coherent regulatory environment for cryptocurrency exchanges and related services within Australia while fostering the growth of the digital assets market.
Disclaimer:
GlobalStablecoins.com serves as an informational resource offering news on coins, blockchain companies, products, and events. This content should not be perceived as investment advice. Consulting a financial advisor is advisable before making any investments in ICOs, cryptocurrencies, crypto assets, security tokens, utility tokens, exchange tokens, global stablecoins, stablecoins, or eMoney tokens. GlobalStablecoins.com cannot be held liable, either directly or indirectly, for any loss or damage resulting from your reliance on the information provided on this site.
Affiliate Disclosure / Sponsored Posts:
If a Sponsored Post references any cryptocurrency endeavor, we urge our readers to perform their own research before proceeding. GlobalStablecoins.com does not endorse the purchase, sale, or holding of any cryptocurrency by you. Please conduct your own investigations and consult with a financial advisor prior to making any investment choices.
GlobalStablecoins.com may earn compensation through affiliate links. Engaging with an affiliate link may result in compensation for GlobalStablecoins.com. For instance, if you click on an affiliate link, register, and execute trades on an exchange, GlobalStablecoins.com may receive compensation from that transaction.
Prior to investing in crypto assets, you should be aware of the following:
Cryptoassets are recognized as high-risk, speculative investments.
Be prepared to lose your entire investment if you invest in crypto assets.
All Sponsored Posts are financed by crypto projects, coin foundations, advertising companies, PR firms, or other marketing organizations. GlobalStablecoins.com is not affiliated with any marketing agency nor owns any blockchain or crypto foundation.
The goal of offering Sponsored Posts to advertisers is to support the day-to-day operations of GlobalStablecoins.com.
If you encounter a Sponsored Post you suspect to be fraudulent or misleading, please reach out to us for an immediate investigation.
