Andrew Bragg – an Australian Liberal Senator for New South Wales – drafted a bill that could put the local cryptocurrency sector under strict supervision.
If accepted, the legislation will require digital asset exchanges and stablecoin issuers to disclose their operations to authorities, while Chinese banks dealing with digital yuan in Australia will also face enhanced scrutiny.
Australia Should Move Fast
In a recent speech at the Blockchain Associations Forum, Senator Bragg opined it is time for the crypto industry to “come out of the shadows into the light.” Outlining the collapse of Terra, he presented a draft bill that will focus mainly on stablecoin issuers.
Before introducing products to consumers, they will have to receive a special license from Australia’s watchdogs. Additionally, such firms will be required to have reserves in local and foreign currency so that clients could be reimbursed in case of a crash.
Senator Bragg’s bill will also require a group of Chinese financial institutions operating in Australia to report their digital yuan transactions to the central bank.
The standards for cryptocurrency exchanges will also be lifted. Platforms will have to ensure maximum transparency on their activities, segregate customers’ funds, and take all necessary cybersecurity measures.
In May this year, the Australian Labour Party won the government elections, while its leader – Anthony Albanese – became the Prime Minister. Upon stepping into that role, he vowed to battle climate change, reduce the spread of inflation, and impose comprehensive rules on the cryptocurrency industry.
According to Senator Bragg, though, the ruling body has not taken any steps to regulate the domestic digital asset sector yet. It needs to act fast, so Australia does not fall behind other countries. He concluded:
“Australia is in a race for consumer protection, capital attraction, and innovation. The Albanese government is trying to create the impression that it is doing something when it is not.”
Crypto Ads Should be Limited, too
Over the past several months, cryptocurrency firms have advertised themselves and their products during sports events or in public places. Such an example was the last Super Bowl, where the logos of CryptoCom, Coinbase, and many others were seen around the stadium.
Senator Bragg noted that similar marketing campaigns are present in Australia too. In his view, some ads were “giving an impression that they are offering a regulated product when they are not.”
As such, the domestic watchdogs should pay attention to that issue and only allow adverts that promote regulated companies that ensure maximum consumer protection.