Australian Senator Andrew Bragg introduced a bill proposing a licensing system for cryptocurrency exchanges in the country. The Digital Assets (Market Regulation) Bill 2023 aims to expedite the regulation of digital assets, addressing concerns about the slow progress in Australia compared to global counterparts.
Australian Senator Bragg stated on his website that Australia is losing the race to regulate digital assets, and the bill aims to put the country back into contention.
The Digital Assets Bill includes provisions for licensing exchanges, custody requirements, and stablecoins, focusing on consumer protection and investment promotion. It addresses concerns raised by the collapse of FTX and aims to prevent similar incidents in the unregulated market.
The full text of the Bill is available here.
Recent legal actions against Binance and Coinbase in the US have prompted the need for swift regulatory measures. The proposed bill intends to regulate the crypto industry through parliamentary processes rather than stealth, as seen in the US.
Senator Bragg expressed disappointment in the slow progress of the government’s token mapping consultation program, which could delay regulatory development until 2024, as revealed through Freedom of Information documents.
The bill outlines minimum capital requirements, governance procedures, segregation of customer funds, and security measures to ensure proper regulation of cryptocurrency in Australia.
