Australia’s Senate Committee on Economics Legislation has provided feedback on the proposed cryptocurrency bill introduced by Senator Andrew Bragg. The committee issued its report on the draft bill, known as “The Digital Assets (Market Regulation) Bill 2023,” on September 4th, requesting that certain amendments be made.
The Senate Committee reviewed the bill and recommended passing it with minor changes, including removing nonfungible tokens (NFTs) from the definition of regulated digital assets. Additionally, the lawmakers suggested excluding specific asset-based tokens, such as the Gold and Silver Standard and the BetaCarbon Token, from the definition of stablecoins. They also proposed extending the transition period from three to nine months.
Another significant recommendation put forth by the Senate Committee is for the Board of Taxation to review the tax treatment of digital assets and transactions in Australia. The goal is to introduce legislation regarding this matter in early 2024.
Furthermore, the lawmakers emphasized the importance of fully implementing the recommendations made by the Council of Financial Regulators to address the issue of debanking in Australia. The government needs to consider potential policy responses to prevent banks from cutting services to cryptocurrency firms, as this could have adverse effects and drive the industry underground.
According to the Senate Committee, the government’s approach to digital asset regulation is negatively impacting Australian consumers and investment. They view Senator Bragg’s bill as the first serious step in implementing a comprehensive digital asset regulatory framework. However, they criticized the government for abandoning the ambitious crypto agenda of the former liberal government, claiming that Australians will pay the price.
Senator Bragg introduced the “Digital Assets (Market Regulation) Bill 2023” in March with the aim of safeguarding consumers and promoting investment. The draft bill provides regulatory recommendations for stablecoins, licensing of exchanges, and custody requirements.
The Senate Committee’s report was delayed from its original expected release date. Initially, the committee planned to issue the report on the bill by August 2nd but requested extensions several times. Finally, the report was published on September 4th.
In conclusion, the Senate Committee on Economics Legislation has reviewed Senator Bragg’s cryptocurrency bill and has recommended passing it with certain amendments. The committee’s report also highlights the need for a comprehensive regulatory framework, tax considerations, and policy responses to debanking. By addressing these issues, Australia can create a more favorable environment for the growth and development of the cryptocurrency industry within the country.
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