The Australian Senate Economic Legislation Committee has issued its feedback on Senator Andrew Bragg's proposed cryptocurrency bill. The draft bill, titled the Digital Assets (Market Regulation) Bill 2023, has received mixed reviews from the committee. The majority of the committee recommended that the Senate should not pass the bill and that further study is needed on the subject.
However, Senators Bragg and Dean Smith dissented from the majority view and provided a more supportive perspective on the bill. They recommended that the Senate pass the bill with some minor changes, such as excluding non-fungible tokens (NFTs) from the definition of regulated digital assets.
Additionally, the dissenting lawmakers suggested excluding certain asset-based tokens, like Gold Silver Standard and BetaCarbon tokens, from the definition of stablecoins. They also proposed extending the transition period from three months to nine months. In their report, Bragg and Smith called for A review of the tax treatment of digital assets and transactions in Australia by the Tax Commission, with the aim of introducing relevant legislation in early 2024.
They emphasized the need to fully implement the recommendations made by the Financial Services Commission (FSC) regarding potential policy responses to the practice of debanking cryptocurrency firms in Australia. The FSC's investigation revealed that the government's approach to digital asset regulation has adverse consequences for Australian consumers and investments.
Senator Bragg introduced the Digital Assets (Market Regulation) Bill 2023 in March, with the objective of protecting consumers and facilitating investment in the cryptocurrency space. The bill outlines regulatory proposals related to stablecoins, exchange licensing, and custody requirement s.
The Senate committee's report was slightly delayed from its initial deadline. Originally, the committee aimed to provide the report by August 2 but requested extensions, with the final deadline set for September 4.
