Andrew Bragg, a New South Wales-based senator for the Australian Liberal Party, prepared a measure that would put the local cryptocurrency industry under stringent regulation.
If enacted, the law will oblige digital asset exchanges and stablecoin issuers to declare their operations, while Chinese banks trading with digital yuan in Australia will be under heightened scrutiny.
Australia Should Act Rapidly
Senator Bragg recently stated at the Blockchain Associations Forum that it is time for the cryptocurrency business to emerge from the shadows into the light. Detailing the collapse of Terra, he provided a draft bill that will primarily target stablecoin issuers.
Before releasing products to customers, they must get a license from Australia’s regulatory agencies. In addition, these businesses will be obliged to maintain local and international currency reserves so that clients may be compensated in the event of a financial crisis.
A set of Chinese financial firms operating in Australia will be required under Senator Bragg’s bill to declare their digital yuan transactions to the central bank.
Additionally, the standards for bitcoin exchanges will be relaxed. Platforms must provide maximum activity transparency, separate user cash, and take all essential cybersecurity precautions.
The Australian Labour Party won the government elections in May this year, and its leader, Anthony Albanese, became Prime Minister. Upon assuming this position, he pledged to combat climate change, curb the rise of inflation, and establish stringent regulations on the Bitcoin business.
Senator Bragg claims that the governing body has not yet taken moves to control the domestic digital asset market. Australia must move quickly to avoid falling behind other nations. His conclusion:
“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 Restricted.
For several months, bitcoin companies have promoted themselves and their products at sporting events and in public spaces. The most recent Super Bowl was an example of this, as the logos of Crypto.com and Coinbase could be seen around the stadium.
Senator Bragg observed that similar marketing campaigns exist in Australia. Such advertisements show that they deliver a regulated product when they are not.
As a result, domestic watchdogs should pay attention to this problem and only permit advertisements for regulated enterprises that provide the highest level of user protection.
