Crypto Advocate Senator Andrew Bragg Has Launched His Digital Asset Law In Parliament

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The architect of Australia’s first response to regulating digital assets in Australia has lost patience with the new government, issuing its own draft legislation to push Labor to act on the issue.

Liberal Senator Andrew Bragg co-authored a landmark Senate Select Committee report on digital asset regulation last year that examined issues such as regulation and consumer protection, the fintech panic of “debunking” and the taxation of digital assets, making 12 recommendations. Established our legislative roadmap with Which was adopted by the previous coalition government.

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But in August, Federal Treasurer Jim Chalmers and Assistant Treasurer Stephen Jones announced an additional review into the sector to map Australia’s cryptocurrency landscape. Although the news was welcomed by the sector, many are hoping that the government will act quickly to provide certainty. ,

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Senator Bragg decided to act, issuing a draft bill called the Digital Assets (Market Regulation) Bill 2022.

They have opened consultations on the draft till October 31.

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Bragg argues that Australia is lagging behind in consumer protection and investment promotion because of labor inaction.

Australia must keep pace with the global race to regulate digital assets,” he said.

“There was a lot of progress under the previous coalition government. The Labor government considers cryptocurrencies a “scam” and is starting its operations from scratch.

Senator Bragg said the bill does the following:

Offers licenses for: Digital Asset Exchanges, Digital Asset Custody Services and Stablecoin Issuers: This includes requirements for holding Australian or foreign currency reserves with an Australian bank and for frequent reporting. Establishes disclosure requirements for e-yuan originators in Australia, as e-yuan is the first CBDC issued by a central bank of a major economy.

Speaking to the Startup Daily Show this week, Senator Bragg said that with the benefit of the vision, he would have changed some of his recommendations from the Senate report, but added that it was a fast-moving space and now new There are emerging threats, such as e-yuan.

Addressing the draft bill, he said it outlines how Australian consumers can be protected with capital requirements, key personnel testing, audit and disclosure.

“20% of the population owns some form of crypto, and with the emergence of central bank digital currencies (CBDCs) issued by states that do not share our liberal-democratic values, there is a need for consumer protection in this space. It’s urgent. It’s not just a race for capital and investment in this industry. It’s a race for the future of our country and the economy,” Bragg said.

“Wait is not an option and Australian consumers are exposed to an unregulated market as we speak.”

Senator Bragg said Australians “face a gaping hole” between investing in a financial product protected by regulation of crypto and endless advertising throughout football finals.

He also points to the collapse of the algorithmic stablecoin Terra in the US, which has cost investors an estimated $60 billion.

“Minimum reserve standards should be introduced to ensure that stablecoin issuers provide consumers with at least a minimum standard of consumer protection,” he said.

Bragg is also concerned with China’s digital currency. E-yuan, an aspect that was not expected in his October 2020 report.

“This act specifically targets e-yuan as it is the first CBDC issued by a major economy, and the financial influence of China is particularly relevant in our Pacific region,” he said.

“The e-yuan could be a much more successful effort than China’s efforts to replace the US dollar with the yuan”, it said, adding that in our own region, where access to banking and payment systems can be challenging and expensive. Well, it could prove to be very popular.

The details of Digital Asset Paper are given here.

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