The fate of Australia’s digital market hangs in the balance with the contentious Digital Assets (Market Regulation) Bill awaiting approval. Senator Andrew Bragg, the brains behind this bill, has emphasized the perils of its rejection.
The Digital Asset Bill’s Rejection: Risks Ahead
If the bill doesn’t secure a nod from the parliament, Australia’s investors could face significant exposure to unregulated markets. This, Senator Bragg suggests, might repel crucial investments from the nation.
On September 4, the Senate Committee on Economics Legislation weighed in. They advised against Bragg’s proposal. Instead, they proposed continued dialogue with industry experts for improved crypto regulations. Senator Jess Walsh, the committee’s chair, elucidated their reservations. The primary concern? The bill’s seeming incompatibility with existing regulations. This discrepancy raises fears of potential regulatory loopholes and unintended negative impacts on the industry.
Senator Bragg, understandably disappointed, contested the committee’s stand. He believes such a move exposes consumers to market uncertainties and propels investments to foreign shores. His rationale? Digital asset regulations serve a dual purpose. Firstly, they shield consumers. Secondly, they catalyze market investment. This view was shared by the former Liberal government back in October 2021.
Bragg hints at political bias influencing the rejection. He accuses the predominant Labor Party membership of the Senate Committee of letting partisanship dictate their decision. He’s candid in his disappointment, lamenting the stalling of Australia’s digital asset regulations.
A Broader Regulatory Perspective On Digital Assets
Liam Hennessey, a partner at Clyde & Co., offers a nuanced take. He said the rejection might stem from other regulatory pursuits, notably the Treasury’s “token mapping” initiative. This endeavor seeks to delineate how crypto assets and services should be regulated. On February 3, a public consultation paper was released, marking it as a stepping stone towards regulating digital assets. However, the government’s subsequent silence on this front is deafening.
Introduced in March 2023, Bragg’s bill aspires to achieve twin objectives: safeguard consumers and entice investors. It proposes guidelines for stablecoins, licenses for exchanges, and outlines custody necessities. Currently, the bill awaits a vote in the Senate’s next session.
The Digital Assets (Market Regulation) Bill promises a regulatory framework for Australia‘s burgeoning digital market. While concerns exist, so does the potential for an innovative regulatory model. The next Senate session will be pivotal for the nation’s digital future.
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