The Senate Economic Legislation Committee in Australia has rejected a crypto bill led by a pro-crypto politician, stating that further refinement is necessary.
Australia Requires Urgent Clarity on Crypto Regulations
The committee has denied Liberal Party Senator Andrew Bragg’s “Digital Assets (Market Regulation) Bill 2023,” as reported recently. The draft bill was co-authored by Western Australian Senator Dean Smith.
Despite industry participants presenting their arguments, the committee does not believe it is ready for approval. They recommend that the bill not be passed.
Bragg and Smith argue that the government’s rejection of the bill is harming Australian consumers and investment. They claim that it has deprived Australia of well-defined crypto regulations.
The bill covers a range of matters, including auditing, segregation of funds, proof-of-reserves, and reporting duties. Its main objective is to provide clarity for crypto investors:
“The Bill is designed to do what this Government is refusing to do: provide protection for consumers and certainty for investors.”
Delaying The Implementation of Rules Threatens Innovation
Australian lawyer Joni Pirovich argues that the delay in implementing regulations is hindering the Australian economy:
“Apart from traditional finance, there has been a mass exodus of talent and capital from Australia since around mid-2022.”
Bragg introduced the draft bill on March 28, emphasizing the need for regulation. He believes that implementing regulations will boost innovation and the economy in Australia.
Hot Take:
The rejection of the crypto bill by the Senate Economic Legislation Committee highlights the urgent need for clear regulations in Australia. Without proper guidelines, consumers and investors are left vulnerable in the crypto market. The delay in implementing these regulations not only hinders innovation but also leads to a loss of talent and capital from the country. It is crucial for the Australian government to engage in further consultation with the industry to develop effective and purposeful digital assets regulation. By doing so, Australia can regain its position as a leading player in the race to regulate the crypto industry, ensuring consumer protection and fostering investment opportunities.
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