Recently, Senator Andrew Bragg introduced the Digital Assets (Market Regulation) Bill to the Australian parliament intending to provide consumer protection and promote investments in digital currencies.
The Stance of Senator Bragg
Senator Bragg has emphasized the importance of putting Australia back into the race to regulate, showcasing a commitment to setting the necessary regulations for digital assets.
Australia can be a hub for digital asset exchanges and custodians, safeguarding consumers through the proposed legislation. However, to make this a reality, taking immediate action is very essential, as per Bragg’s statement.
If this Act is passed it would require digital asset exchanges and service providers to obtain a license from ASIC or they should at least have a recognized foreign license. Furthermore, the bill also includes various provisions for licensing, custodial requirements, and stablecoins.
Entire Journey of Digital Asset Regulation
The Senate Select Committee on Australia as a Technology and Financial Center, chaired by Bragg, released twelve recommendations concerning digital asset regulation in October 2021, of which eleven were adopted by the former government.
On March 21, the Treasury initiated a public consultation process to ensure that the country remains competitive in the digital asset regulatory landscape, with regard to custodial and licensing requirements.
The Minister for Labor and Financial Services, Stephen Jones, disregarded the consultation which had already taken place and initiated the process once again in May 2022, as reported by Bragg. Bragg also emphasized that the lack of continuity had led to Australian citizens suffering collapses, such as FTX.