A new proposed law will prohibit unlicensed stablecoin operations in Australia
An Australian Lawmaker proposed a new bill to introduce a new regulatory framework for the Chinese CBDCs users, stablecoin issuer companies & crypto exchanges.
Australia is a tech-adaptive region in the world but due to a lack of better & clear regulatory policies, the majority of the crypto companies faced huge problems with local banks. Perhaps a few Australian lawmakers raised their hand in support of the crypto industry to make the laws clear but that was not enough for the Aussie crypto industry.
On 19 September, Financial Review reported that Andrew Bragg, an Australian Liberal Senator, drafted a bill “Digital Assets (Market Regulation)” to bring a regulatory framework to the crypto industry.
The proposed crypto bill is targeting the regulation of stablecoins, crypto exchanges, and the Chinese digital yuan (e-CNY or e-Yuan).
Under the proposed bill, all the stablecoin issuer companies will be required to have a crypto license and also required to report the audit of reserved funds behind the stablecoin every quarter. Stablecoin companies will remain restricted to hold the backend reserved funds in local Australian banks. And this new rule was planned because of the recent case of TerraUSD, which collapsed to around zero value.
Senator Bragg said:
“What we’ve seen in the last six months or so has been the collapse of major stablecoins, including the US stablecoin Terra. <…> It’s very important that we protect consumers against any unnecessary harm.”
The citizens of Australia will also be required to report all minor activities associated with the transactions linked with Digital Yuan, or say Chinese CBDCs.
In addition to these new policies, digital assets platforms would require conduct regulation, separation of customer funds, disclosure, and cybersecurity requirements for individuals based in Australia. In short, the proposed crypto bill will introduce a better ecosystem for the crypto industry.
Read also: A hacker drains more than $2.1M from Ethereum ‘vanity addresses’
