Andrew Bragg - Liberal Party NSW

Australian Senator Drafts a Bill for Urgent Stablecoin and Digital Yuan Regulation

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Australian Senator Drafts a Bill for Urgent Stablecoin and Digital Yuan Regulation:

Andrew Bragg – an Australian Liberal Senator for New South Wales – has drafted a bill that could trouble the local cryptocurrency sector – by strict regulations.

Andrew Bragg - Liberal Party NSW
Andrew Bragg – Liberal Party NSW

If approved, the legislation will require digital asset exchanges and stablecoin issuers to reveal their operations to authorities, while Chinese banks dealing with digital yuan in Australia will also face strict scrutiny.

In a recent speech at the Associations Forum, Senator Bragg opined it is time for the crypto industry to “come out of the shadows into the light.”

Citing the collapse of Terra, he presented a draft bill that will focus strictly on stablecoin issuers.

Before introducing products to consumers, they will have to receive a special license from Australia’s regulatory bodies.

Additionally, stablecoin issuers will be required to have reserves in local and foreign currency so that clients could be reimbursed in case of a crash.

Also, the bill will require a group of Chinese financial institutions operating in Australia to report their digital yuan transactions to the central bank.

Crypto exchanges will also have a changed standards.

Crypto firms will have to ensure maximum transparency on their activities, segregate customers’ funds, and take all necessary cybersecurity measures.

In May this year, the Australian Labour Party won the government elections, with its leader – Anthony Albanese – becoming the Prime Minister.

The Prime Minister, on stepping into office,  vowed to battle climate change, reduce the spread of inflation, and impose comprehensive regulations on the cryptocurrency industry.

According to Senator Bragg, though, the ruling body has not taken any necessary steps to regulate the domestic digital asset sector yet.

It needs to act swiftly, so Australia does not lag behind other countries. He concluded:

“Australia is in a race for consumer protection, capital attraction, and innovation. The Albanese government is trying to create the impression that it is doing something when it is not.”

 

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