Senator Andrew Bragg is hoping that a bill he has introduced to the Australian Parliament may serve as the basis of regulation for the cryptocurrency industry in the country.
This includes all services related to the industry in the hope of bringing regulatory clarity that protects consumers and businesses in equal measure.
As the bill puts it, the proposal seeks to “promote investors” while ensuring that consumers interact with such products safely.
Australia has been targeted by various crypto scams and bad actors over the past few years, with authorities moving slowly to offer detailed regulation of the sector that would clearly delineate between licensed and unlicensed entities.
Part of this fear has to do with the fact that crypto is too new and regulators were not willing to set conditions that could backfire later.
Now, the political will for change, especially following the collapse of Terraform Labs and FTX, has grown.
The pitch made by Bragg, Digital Assets (Market Regulation) Bill 2023, is a private project, which is ambitious given the legal grounds for passing such an initiative.
While regular bills – those that are backed by parties and multiple legislators – are usually passed within a legislative session, private bills could take years to gain any significant momentum in Parliament.
Bragg’s bid to offer a quick regulatory framework for the industry is likely to hit a snag as well. However, the senator insists that his bill is the result of the current Labor government failing to follow the 12 recommendations issued by the Senate Select Committee on Australia, prompting him to take matters into his own hands.
“Australia can be a digital asset hub whilst protecting digital asset consumers. But we must act now”, the senator assured.
The bill details how crypto regulation will happen, with both people and businesses requiring a license should the bill clear the parliament.
The regulation will fall in the remit of the Australian Securities and Investments Commission.
Australia already revealed plans in 2022 to tighten rules around crypto this year, ensuring that consumers remain safeguarded against fraud and bad overseas actors.
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