Australian Senator Drafts Bill to Regulate Stablecoins And Digital Yuan

[Coin_Gabbar]

Andrew Bragg, a Liberal Senator from Australia, has presented a new draught bill in the parliament.
The bill aims to crack down on digital asset exchanges, stablecoins, and the e-Yuan, China's central bank's digital currency.

Senator Bragg highlighted in a statement on September 18 that Australia must stay up with the global race for digital asset regulation. Since it is essential that the parliament drives legislation reform on the matter.

The new draught bill, dubbed Digital Assets (Market Regulation) Bill 2022, proposes licensing for digital asset exchanges. The measure also aims to regulate digital asset custody services, stablecoin issuers, and transparency requirements for Australian e-Yuan facilitators.

Senator Bragg spoke to a local media outlet that “Australia has a high-risk exposure as an economy, which is one of the reasons why we need a serious program. The program aims to manage disruption and risks associated with the creation of a CBDC.”

According to Senator Bragg, the objective of this measure is to establish an effective regulatory framework. Also, it mandates some banks to report information that facilitates the use or availability of digital Yuan in Australia. Additionally, it imposes additional duties on governing bodies in relation to this act.

Senator Bragg stated that he is not taking an accusatory stance, but rather is just preparing and gathering facts, which he believes is entirely reasonable.

The Liberal senator also stated that Australia would not benefit from having a CBDC because privacy issues could not be managed. However, it is crucial that the Australian government put something on the table to manage other CBDCs being introduced. As the Governor of The Reserve Bank of Australia has previously stated that stablecoins needs regulation.

The draft bill consultation is open until October 31, 2022,  and the community is welcome to submit feedback.

Andrew Bragg, a pro-crypto Australian politician, has been a vocal supporter of cryptocurrency since he was elected as a senator in 2019. Senator Bragg has been advocating for a clear legal framework for digital assets and crypto firms since 2021, in an effort to keep local startups from expanding globally.

Senator Bragg stated that he chaired the digital assets committee with no preconceived ideas. At that time, he undertook an investigation into these issues while also informing himself about the risks and opportunities.

Meanwhile, the Australian Labor administration is said to be working on crypto asset reforms in order to enhance the way the country's regulatory structure manages crypto assets.

Last month, the Treasury Department announced that it will prioritize token mapping work in 2022, which will aid in determining how crypto assets and related services should be regulated.
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