Australian Senate Committee Rejects Crypto Regulation Bill

• Australian Senate committee has rejected a crypto regulation bill.
• The committee vouched for the government’s approach.
• A crypto regulatory framework in the country remains uncertain.

The future of crypto regulation in Australia remains unclear after the country’s Senate Economics Legislation Committee rejected the Digital Assets (Market Regulation) Bill 2023, which Senator Andrew Bragg introduced on March 29.

According to parliamentary business updates, the bill intended to introduce provisions for digital asset exchange authorization requirements, digital asset custody authorization requirements, stablecoin issuance authorization requirements, and disclosure requirements for CBDCs facilitators in the country.

Potential Conflict with the Government’s Current Approach

The committee critiqued Senator Bragg’s bill, citing that it was at odds with the measured and industry-accepted approach the Australian government is undertaking to harmonize current and upcoming digital asset regulations.

“The approach by the government is well-considered and effective in supporting consumers and the digital assets industry. The committee welcomes the view held by many submitters that the government’s approach is one that should be pursued,” the report read.

Further, the committee highlighted that inquiry participants emphasized the importance of adopting a digital asset framework that is congruent with international regimes and pointed out that the bill lacked significant details in terms of proposed definitions and licensing requirements.  

What’s Australia’s Stand on Positive Crypto Regulation?

While the senate’s decision to reject the crypto regulation bill doesn’t signify an outright ban, it demonstrates Australia’s cautious stance towards ratifying a proactive digital assets regime.

In February 2023, the government revealed its Token Mapping Consultation Paper, which was supposed to guide a licensing and custody framework for digital asset service providers by the end of 2023 Q2, but that has yet to happen.

Notably, according to the committee, the government is still widely consulting with key industry players to formulate a tailored framework, which only prolongs the indefinite timeline.

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