Australia Senate Committee Rejects Senator Bragg’s Crypto Bill
Australia’s Senate Economics Legislation Committee has rejected opposition senator Andrew Bragg’s digital asset regulation bill.
The Committee said that the bill was not aligned with the government’s approach.
Australia’s Senate Economics Legislation Committee rejected a Digital Assets (Market Regulation) Bill on Monday.
The bill was introduced by opposition senator Andrew Bragg last year. In response to the rejection, Bragg criticized the incumbent Labor government for putting the country’s crypto regulation “in the slow lane.”
The inquiry into the bill revealed that although its goals were well-meaning, submitters couldn’t agree on whether there was a need for a specialized legislative framework for digital assets as opposed to making amendments to existing regulations.
Entities such as FinTech Australia expressed reservations about the bill’s lack of details regarding digital asset exchange requirements and governance standards for stablecoins. They also highlighted concerns about the timeline for implementing these reforms.
“The committee is of the view that the bill is at odds with the measured and industry accepted approach the government is undertaking to ensure that current and new regulations are well considered and effective in supporting consumers and the digital assets industry,” Australia’s Senate Economics Legislation Committee’s report said.
The report indicates that there will be further discussions in the coming weeks regarding the development of “fit-for-purpose” licensing and custody requirements for digital assets. This builds upon the token mapping exercise introduced by Prime Minister Anthony Albanese last year.
Australia’s CBDC Efforts
On Aug 9, the Reserve Bank of Australia announced a collaboration with the Digital Finance Cooperative Research Centre (DFCRC) on a research project to explore use cases for a central bank digital currency (CBDC).
The project, expected to take approximately one year, will encompass the creation of a small-scale CBDC trial. This trial will be conducted within a ring-fenced environment and will involve a real CBDC claim on the Reserve Bank.
However, in a project report titled Australian CBDC Pilot for Digital Finance Innovation published on Aug 23, the Reserve Bank said: “Given the many issues that are yet to be resolved, any decision on a CBDC in Australia is likely to be some years away.”
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