• A new bill has been introduced to the Australian parliament to implement a licensing framework for cryptocurrency exchanges.
• If passed, the Digital Assets (Market Regulation) Bill 2023 would require crypto exchanges in Australia to obtain a license in order to operate legally.
• The proposed framework also includes provisions for regulating stablecoins and custody obligations.
Australian Parliament Introduces Crypto Exchange Licensing Bill
On Wednesday, Australian opposition senator Andrew Bragg introduced a new bill to the country’s parliament to implement a licensing regime for crypto exchanges.
Purpose Of The Bill
If passed, the bill would require Australian crypto exchanges to obtain a license to operate legally, bringing them in line with other financial service providers in the country who are also subject to licensing requirements. The bill also includes provisions for regulating stablecoins and custody obligations.
Private Member’s Bill
Senator Bragg introduced the Digital Assets (Market Regulation) Bill 2023 as a private senator’s bill, which aims to protect consumers and encourage investment in digital assets by introducing regulatory measures. While Australian ministers typically introduce new regulatory changes, the Parliamentary Education Office notes that individual members of parliament can also introduce private members’ or private senators’ bills.
Criticism Of Government Action
Senator Bragg also criticized the current Labor government for failing to implement multiple recommendations related to crypto regulations. The Senate Select Committee in Australia introduced these regulations as a Technology and Financial Centre in October 2021.
Regulation In Focus
Regulation is the center stage for the crypto industry across multiple jurisdictions. Senator Bragg argued that the Australian government’s inability to ensure regulatory clarity surrounding the industry makes it vulnerable to industry-wide events, for instance,