An Australian Liberal Senator, identified as Andrew Bragg has unveiled a new draft bill for the regulation of stablecoins and e-yuan in the country. Bragg conveyed the draft bill in a media release on Monday. According to the senator, the new bill will focus on clamping down on crypto exchanges.
Bragg, in the statement, maintained the bill manifested owing to the need by Australia to “keep pace with the global race for regulation on digital assets.” This, according to him, mandated the parliament to come up with “law reform” on the assets, including stablecoins. According to reports, consultations have commenced on the draft bill, as the government intends to welcome “community feedback” until October 31. Bragg’s urges members of the community to contribute their opinions to the bill draft.
Notably, the bill was titled Digital Assets (Market Regulation) Bill 2022. Reportedly, it advocates the issuance of licenses to cryptocurrency exchanges. Also, it mandates every provider of virtual asset custody services, and stablecoins issuers to secure permits before operating in the country. In addition, the bill draft highlights numerous disclosure requisites for facilitators of the e-Yuan in Australia.
New bill to avail consistent framework for regulating CBDC and stablecoins – Braggs
Bragg further that Australia possesses “quite a risk exposure, as an economy.” This, according to him, necessitates a robust mechanism for addressing risks, incurred from the development of a CBDC and stablecoins. He further that the bill aims to avail a consistent regulatory framework within the country.
More so, the Senator noted that it tends to allow the as well as to provide “for the disclosure of relevant information by certain banks that facilitate the use or availability of digital Yuan in Australia.” Bragg added that the draft offers “additional duties” for regulatory agencies in Australia. This, according to him, aid the “regulation of activities relating to digital assets, stablecoins and digital Yuan.”
According to Bragg, the development is not “an accusatory position to take.” He describes it as simply “prepared and gathering information.” The Senator remarked that Australia has nothing to benefit in exploring CBDC as “privacy issues cannot be managed.” Meanwhile, Australia must take steps to manage other CBDCs, like e-yuan being introduced, Bragg added. This, according to him, made the Governor of The Reserve Bank of Australia to call for the regulation of stablecoins and CBDCs.
According to findings, the Australian Labor government intends to reform the cryptocurrency sphere. This, as reported, tends to enhance the regulatory outlook obtainable in the country.