Australian senator drafts bill aimed at stablecoin, digital yuan regulation

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Australian Liberal Senator Andrew Bragg has released a new draft bill aimed at curbing exchanges of digital assets, stablecoins and China’s central bank’s digital currency, the e-yuan.

In a statement on September 18, Senator Bragg stated that “Australia must keep pace with the global race for regulation of digital assets” because “it is essential that Parliament drives legal reform” on the issue.

The new draft law, titled Digital Assets (Market Regulation) Bill 2022, calls for the introduction of licenses for digital asset exchanges, digital asset custody services, stablecoin issuers, as well as disclosure requirements for e-commerce facilitators. – Yuan in Australia.

Speaking to Cointelegraph, Senator Bragg said that Australia has “quite a risk, as an economy, and that’s one of the reasons why we have to have a serious program to manage disruption, to manage risks that come out of CBDC development.”

Senator Bragg said the purpose of this special act is to provide an “effective regulatory framework” as well as provide “for the reporting of information by certain banks that facilitate the use or availability of digital yuan in Australia” and provide “additional obligations”. ” for boards related to this act and the “regulation of activities related to digital assets and digital yuan.”

Senator Bragg said this is not “an accusatory position to take”, it is simply “being prepared and gathering information”, which he thinks is completely “reasonable”.

The Liberal senator also added that Australia would not benefit from having a CBDC because “privacy issues cannot be managed”, however it is important that the Australian government “put something on the table” to manage other CBDCs introduced, such as the Governor of the Reserve Bank of Australia “has spoken before saying there needs to be regulation of stablecoins.”

The draft project consultation is open until 31 October 2022 and welcomes “community feedback”.

Andrew Bragg, a pro-crypto Australian politician, has been an outspoken advocate for cryptocurrency since he was elected senator in 2019. Senator Bragg is pushing for a clear regulatory framework for digital assets and crypto companies from 2021, to prevent local. startups from moving abroad.

Senator Bragg noted that he “chaired the committee” for digital assets with “no fixed view at the time” and “conducted an inquiry into these issues” and informed himself “of the risks and opportunities”.

Related: A Chinese municipal bank issues the first digital yuan loan using intellectual property as collateral

Meanwhile, the Australian Labor government is said to be working on “crypto reforms” to “improve the way Australia’s regulatory system manages crypto assets.”

Last month, the Treasury stated that it would “prioritize token mapping work in 2022, which will help identify how crypto assets and related services should be regulated.”