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In a significant development, Australia's Senate Economics Legislation Committee has voted against the "The Digital Assets (Market Regulation) Bill 2023," which was introduced by opposition senator Andrew Bragg. The committee, aligned with party lines, instead recommended that the government engage in further consultations with the cryptocurrency industry to formulate more appropriate digital assets regulations.
Key Takeaways:
Crypto Bill Rejected: The Senate Economics Legislation Committee in Australia has rejected a cryptocurrency bill presented by opposition senator Andrew Bragg. The committee's decision comes with a recommendation for the government to continue discussions with the cryptocurrency sector to craft better-suited regulatory measures.
Issues with the Bill: The committee's report outlined concerns about the bill, including a lack of specificity and certainty. Additionally, the bill was deemed inconsistent with the government's broader regulatory approach. The committee also expressed apprehensions regarding international alignment and potential adverse impacts on the cryptocurrency industry.
Government's Regulatory Approach: Prime Minister Anthony Albanese had previously introduced a token mapping consultation paper through the Treasury. This paper was meant to serve as a precursor to a separate consultation paper that would propose a licensing and custody framework for cryptocurrency service providers. However, the latter process is yet to be initiated.
Industry Awaits Clarity: The delay in regulatory developments has left the cryptocurrency industry eagerly awaiting more precise guidance. Michael Bacina, Chairman of Blockchain Australia and a Digital Assets Lawyer, emphasized the necessity for Treasury consultations regarding cryptocurrency custody and licensing. This process should build upon the industry's submissions made during the Senate Committee's review.
CBDC Exploration: Meanwhile, Australia's central bank has been actively exploring potential use cases for a central bank digital currency (CBDC). However, it recently concluded that any decision concerning a CBDC in Australia is likely to be years away.
The rejection of the cryptocurrency bill in Australia underscores the ongoing discussions and uncertainties surrounding cryptocurrency regulation in the country. Industry participants are keenly anticipating more transparent and precise regulatory frameworks to guide their operations.
