The Senate Economic Legislation Committee in Australia has dismissed a crypto bill led by a pro-crypto politician, stressing the need for further refinement.
“The committee recommends that the Australian Government continue to consult with industry on the development of fit-for-purpose digital assets regulation in Australia,” the statement noted.
Australia Requires Urgent Clarity on Crypto Regulations
According to a recent report, the committee has denied Liberal Party Senator Andrew Bragg’s “Digital Assets (Market Regulation) Bill 2023.” The draft bill was co-authored by Western Australian Senator Dean Smith.
Despite various industry participants urgently presenting their points, the committee does not deem it ready for approval. “The committee recommends that the bill not be passed,” it notes.
To learn more about regulations, read BeInCrypto’s guide: Crypto Regulation: What Are the Benefits and Drawbacks?
Bragg and Smith declare that the government’s decision is “hurting Australian consumers and investment.” They further argue that the government rejecting the bill has deprived Australia of a well-defined set of crypto regulations.
The bill addresses both straightforward and slightly more complex matters. These rules cover a broad range from auditing and segregation of funds to proof-of-reserves and fulfilling reporting duties. “The Bill also includes clear definitions of ‘digital assets’, ‘digital asset exchanges’ and ‘stablecoins’, to provide regulatory clarity and certainty,” it notes.
However, its primary aim is to provide more clarity for crypto investors:
“The Bill is designed to do what this Government is refusing to do: provide protection for consumers and certainty for investors.”
Delaying The Implementation of Rules Threatens Innovation
Australian lawyer and industry participant Joni Pirovich asserted that the delay in implementing regulations is impeding the Australian economy:
“I perhaps will be a little bit more brutal. Apart from traditional finance and these opportunities around CBDC and stablecoins, there has been a mass exodus of talent and capital from Australia since around mid-2022.”
Bragg first introduced the draft bill on March 28. “Today I will introduce a bill to regulate digital assets in Australia. The Labour Government has failed to act,” he stated in a tweet.
He believes that effectively putting regulations into action will strengthen innovation and the economy in Australia. “The Digital Assets Bill will put Australia back into the race to regulate,” he further added.
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