There is a hot development in the cryptocurrency world. The Australian Senate has rejected the digital assets bill. He also made a call for consultation with the industry. Let’s look at the details.
Senate committee rejects cryptocurrency bill
The Australian Senate Economic Legislation Committee rejected the Digital Assets (Market Regulation) Bill 2023 proposed by opposition senator Andrew Bragg. Instead, he recommended that the government consult more with the industry to develop appropriate regulations for cryptocurrencies.
The committee’s decision drew criticism from Senator Bragg, who represents New South Wales. Bragg accuses the Labor government of delaying crypto regulation. He also states that they are “putting cryptocurrency regulation into the slow lane.”
Concerns about lack of clarity
The committee’s report expressed concerns about the lack of detail and precision in the bill. Among the highlights is that the proposed cryptocurrency legislation is not in line with international regulatory standards. It was also noted that this raises concerns about regulatory arbitrage and potential adverse effects on the industry.
On the other hand, Prime Minister Anthony Albanese’s submission of a token mapping consultation document through the Treasury in February was expected to lead to a subsequent consultation document outlining a licensing and custody framework for cryptocurrency service providers by mid-2023. However, this process has not yet taken place.
leads to disappointment
Michael Bacina, Head of Blockchain Australia and Digital Assets Advocate, expresses his disappointment. Accordingly, he highlighted the need for a swift Treasury consultation on crypto custody and licensing. He suggests that this consultation could benefit from industry presentations made during the Senate Committee’s review of the bill.
Meanwhile, the Reserve Bank of Australia has launched a pilot test to explore potential use cases for the Central Bank Digital Currency (CBDC). However, it concluded last month that any decision regarding a CBDC in Australia is likely several years away.
Historically moderate stance for the cryptocurrency world
Historically, Australia has taken a relatively moderate approach to cryptocurrency regulation. However, there are increasing voices calling for stricter regulations focused on consumer protection and market integrity. The rejection of the digital assets bill raises questions about Australia’s future stance on digital assets.
Will the government heed calls for a more comprehensive regulatory framework? Or will the crypto industry continue to operate in a gray area? Only time will tell. However, when we look at cryptokoin.com, there is one thing that is clear. That the delay could have far-reaching implications for both investors and the Australian cryptocurrency market.
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