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Australian senator drafts bill to upgrade country regulation of cryptocurrency

Australian senator, Andrew Bragg, is working on legislation that will improve the country’s regulation of cryptocurrencies and other forms of virtual assets.

This piece of legislation, which will be known as the Digital Assets (Market Regulation) Bill 2022, would establish a licensing system for digital asset exchanges as well as issuers of stable coins.

According to Bragg, Australia has to stay up with the global competition to regulate digital assets in order to remain competitive. He has made the text of the law available for review and comments until October 31 of the year 2022.

Andrew Bragg is a member of the Liberal Party of Australia and represents the state of New South Wales in the Senate. He is an advocate for cryptocurrencies and has advocated for a transparent regulatory framework on many occasions.

The Digital Assets (Market Regulation) Bill 2022 includes a provision that would propose the introduction of licences for digital asset exchanges, digital asset custody services, and stablecoin issuers. In addition, the law requires banks to submit certain information in the event that they are involved in the facilitation of e-Yuan transactions inside the nation.

In order to do business in Australia, a digital asset exchange or a digital asset custody service has to be in possession of either a licence granted by the Minister or a recognised foreign exchange licence.

Licenses for Digital Asset Exchanges

Licenses for Digital Asset Exchanges
Licenses for Digital Asset Exchanges

In the case of stablecoins, the proposed legislation requests that issuers of Central Bank Digital Currency (CBDC) do the same thing in order to get the necessary licence in order to do business in the nation. The collection of laws that CBDC issuers are required to follow is going to be called the Stablecoin Issue Requirements (Stablecoin Issue Requirements for short).

In addition, the bill requires certain specified financial institutions to provide information to the Reserve Bank of Australia and the Australian Prudential Regulation Authority in the event that they have helped to make e-Yuan available or used in Australia during the previous calendar year.

It’s important to point out that the e-yuan is the first CBDC to be issued by a large national economy, so this is something to keep in mind. In 2021, the People’s Bank of China, which is China’s central bank, launched the electronic version of the yuan, known as the e-yuan. To this point, only a select few nations, including China, the Bahamas, and Nigeria, have published their CBDCs. The proposed legislation requires the active control of any and all operations using e-yuan.

In the realm of Australian politics, Bragg is well recognised as a leading proponent of cryptocurrencies. In September of the previous year, he said that Australia should work toward becoming a centre for bitcoin trading while also minimising its impact on the environment.

He has made several pleas for the crypto business to be subject to stringent regulation. In a piece of commentary that he wrote in June 2022, he expressed the view that Australia had to implement crypto regulation or risk falling behind in the competition for money, people, and consumer protection. Additionally, he has warned that Australian customers will continue to be at risk until cryptocurrency exchanges are subject to regulation.

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Reporter
Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.
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