Australian Senate Committee Recommends Amendments to Cryptocurrency Bill, Emphasizes Need for Comprehensive Regulatory Framework
Summary:
The Australian Senate Committee on Economics Legislation has provided feedback on a cryptocurrency bill introduced by Senator Andrew Bragg, recommending amendments. The committee suggests removing nonfungible tokens from the definition of regulated digital assets and excluding certain asset-based tokens from the stablecoin definition. They also propose extending the transition period and urge a review of tax treatment for digital assets. The Senate emphasizes the importance of implementing recommendations to address debanking. Senator Bragg's bill is seen as a significant step towards a comprehensive digital asset regulatory framework.
Australia's Senate Committee on Economics Legislation has submitted its feedback on senator Andrew Bragg's cryptocurrency bill. The committee recommended some amendments to the draft bill, formally known as "The Digital Assets (Market Regulation) Bill 2023." Among the minor changes proposed, the committee suggested removing nonfungible tokens (NFTs) from the definition of regulated digital assets. Additionally, the committee advised excluding certain asset-based tokens, such as the Gold and Silver Standard and the BetaCarbon Token, from the definition of stablecoin. They also proposed extending the transition period from three to nine months. The Senate urged the Board of Taxation to review the tax treatment of digital assets and transactions in Australia, with the goal of introducing legislation in early 2024. The lawmakers further emphasized the importance of implementing the recommendations of the Council of Financial Regulators to address debanking in the cryptocurrency industry. The Australian Department of the Treasury had previously acknowledged that the trend of banks terminating services for crypto firms could have adverse consequences. The Senate's report expressed concerns about the government's approach to digital asset regulation, stating that it harms Australian consumers and investment. They highlighted Senator Bragg's bill as a significant step towards establishing a comprehensive regulatory framework for digital assets, while criticizing the government for abandoning the previous liberal government's ambitious crypto agenda. Senator Bragg initially introduced the "Digital Assets (Market Regulation) Bill 2023" in March, aiming to safeguard consumers and promote investment. The bill provides regulatory recommendations for stablecoins, exchange licensing, and custody requirements. The Senate Committee's report was delayed multiple times but was ultimately submitted on September 4.
Published At
9/4/2023 1:38:41 PM
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