Australian Senate Rejects Bill To Regulate Cryptocurrencies
Australia’s Senate Economics Legislation Committee has rejected the “Digital Assets (Market Regulation) Bill 2023,” which was introduced by opposition senator Andrew Bragg.
Instead, the committee has recommended that the government engage in further consultations with the industry to develop more suitable digital asset regulations for the country.
The rejection of the bill, which comes from the Labor government, has drawn criticism from Senator Bragg, who represents New South Wales. He expressed frustration, accusing the government of delaying cryptocurrency regulation.
The committee’s report highlighted several issues with the bill, citing a lack of detail and certainty. It also pointed out that the proposed legislation was not in line with international standards, raising concerns about regulatory arbitrage and negative impacts on the industry.
In February, Prime Minister Anthony Albanese introduced a consultation paper on token mapping through the Treasury, with plans to follow up with another paper outlining a licensing and custody framework for crypto asset service providers by mid-2023. However, this second paper has yet to materialize.
Meanwhile, the Reserve Bank of Australia (RBA) is exploring the use cases of a central bank digital currency (CBDC) in a pilot program. The RBA has stated that an electronic Australian dollar (eAUD) is still years away.
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