On Monday, Senator Andrew Bragg unveiled a draft bill that would control cryptocurrency exchanges, stablecoins, and the virtual currency known as the yuan.
The new draft legislation from Australian Liberal Senator Andrew Bragg targets stablecoins, digital asset exchanges, and China’s e-Yuan, the country’s official digital currency.
According to a statement made by Senator Bragg on September 18, “Australia must keep pace with the global race for regulation on digital assets” because “the parliament must lead legal reform” in this area.
In the new draft law, named Digital Assets (Market Regulation) Bill 2022, licenses are proposed for digital asset exchanges, digital asset custody services, stablecoin issuers, as well as transparency requirements for e-Yuan facilitators in Australia.
Australia must keep pace in the digital assets race: a bill to protect consumers, promote investment & protect our interests.
Media statement: https://t.co/VxFnAKnh1v
New Bill: https://t.co/rtMj2t9Ng2— Senator Andrew Bragg (@ajamesbragg) September 18, 2022
In an interview with Cointelegraph, Senator Bragg stated that one of the reasons Australia needs a real program for managing disruption and risk arising from the creation of a CBDC is because the country has “quite a risk exposure, as an economy.”
According to Senator Bragg, this specific act’s goals are to “provide an effective regulatory framework,” “allow for the reporting of information by certain banks that facilitate the use or availability of digital Yuan in Australia,” and “provide for additional duties” for governing bodies with regard to this act and the “regulation of activities relating to digital assets and digital Yuan.”
This, according to Senator Bragg, is merely being “prepared and gathering information,” which is wholly “reasonable,” and is not “an accusatory posture to adopt.”
According to Senator Bragg, this specific act’s goals are to “provide an effective regulatory framework,” “allow for the reporting of information by certain banks that facilitate the use or availability of digital Yuan in Australia,” and “provide for additional duties” for governing bodies with regard to this act and the “regulation of activities relating to digital assets and digital Yuan.”
This, according to Senator Bragg, is merely being “prepared and gathering information,” which is wholly “reasonable,” and is not “an accusatory posture to adopt.”
The Australian government must “put something on the table” to handle other CBDCs that are being introduced, according to the Liberal senator, who also stated that Australia wouldn’t benefit from having a CBDC because “privacy issues cannot be managed.” However, the Governor of The Reserve Bank of Australia has “spoken before saying there needs to be regulation on stablecoins.”
The draft bill is currently up for public comment until October 31, 2022.
Since being elected as a senator in 2019, Andrew Bragg, a pro-crypto Australian politician, has been a vocal supporter of cryptocurrencies. In an effort to stop local firms from migrating abroad, Senator Bragg has been advocating for a clear regulatory framework for digital assets and cryptocurrency businesses since 2021.
Senator Bragg stated that while “chairing the committee” for digital assets, he “conducted an inquiry into these subjects” and “informed himself about the risks and prospects” with “no fixed perspective at the time.”
To “better the way Australia’s regulatory system regulates crypto assets,” the Australian Labor administration is reportedly working on “crypto asset reforms.”
Treasury officials announced last month that they would “prioritize token mapping work in 2022, which will help establish how crypto assets and related services should be regulated.”
