The Senate Economics Legislation Committee of Australia rejected the “The Digital Assets (Market Regulation) Bill 2023″ proposed by opposition senator Andrew Bragg, urging the government to “continue to consult with industry on the development of fit-for-purpose digital assets regulation in Australia.”
The committee’s report is partisan in nature.New South Wales representative Bragg slammed the decision, claiming that the Labor administration had “put regulating crypto in the slow lane.”
The committee said the bill lacked detail and certainty and was at odds with the government’s approach. The bill was “not congruent with international regimes” and caused “genuine concern for regulatory arbitrage and adverse outcomes to the industry,” it said.
The Treasury, under the leadership of Prime Minister Anthony Albanese, released a consultation paper on token mapping in February. It was intended to be followed up by a further consultation document in the middle of 2023, which would have proposed a licensing and custody framework for companies that provide services related to digital assets.
“The Senate Committee was expected to report on this Bill over a month ago and the industry has been eagerly awaiting Treasury consultation on crypto-custody and licensing,” said Blockchain Australia Chair and Digital Assets Lawyer Michael Bacina. “That consultation should be able to build on the industry submissions published as part of the Senate Committee’s review of this Bill.”
The central bank began a pilot program to investigate potential applications for Australia’s own CBDC and came to the conclusion last month that “any decision on a CBDC in Australia is likely to be some years away.”