A new private bill aimed at regulating digital assets such as cryptocurrencies has been introduced to parliament.
Senator Andrew Bragg introduced the Digital Assets (Market Regulation) Bill in the senate late week, pitching it as a way to “put Australia back into the race to regulate” and protect consumers and promote investment in digital currencies.
“Licensing for exchanges, custody requirements and stablecoins are included in the bill. Australia can be a digital asset hub whilst protecting digital asset consumers, but we must act now,” Bragg said.
If passed, the Act would require anyone operating a digital asset exchange or service to hold a licence granted by ASIC or a recognised foreign licence.
The bill also includes licensing for exchanges, custody requirements and stablecoins.
Banking institutions would also need to meet reporting rules.
Bragg said he introduced the private senator’s bill because Australia "is losing the race to regulate” digital assets.
“In October 2021, the 'senate select committee on Australia as a technology and financial centre' made 12 recommendations relating to digital asset regulation," Bragg said.
“Of these recommendations, 11 were adopted by the former government, and on March 21 2022, Treasury began public consultations on custody and licensing requirements.
Bragg said Labor and financial services minister Stephen Jones had opted to ignore the consultation already undertaken and had restarted the process in May 2022.
He claimed the lack of continuity had exposed Australians to collapses such as FTX.
