Australian Senator Calls for Urgent Stablecoin and Digital Yuan Regulation

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Andrew Bragg – an Aus­tralian Lib­er­al Sen­a­tor for New South Wales – draft­ed a bill that could put the local cryp­tocur­ren­cy sec­tor under strict supervision.

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

Australia Should Move Fast

In a recent speech at the Blockchain Asso­ci­a­tions Forum, Sen­a­tor Bragg opined it is time for the cryp­to indus­try to “come out of the shad­ows into the light.” Out­lin­ing the col­lapse of Ter­ra, he pre­sent­ed a draft bill that will focus main­ly on sta­ble­coin issuers.

Before intro­duc­ing prod­ucts to con­sumers, they will have to receive a spe­cial license from Australia’s watch­dogs. Addi­tion­al­ly, such firms will be required to have reserves in local and for­eign cur­ren­cy so that clients could be reim­bursed in case of a crash.

Sen­a­tor Bragg’s bill will also require a group of Chi­nese finan­cial insti­tu­tions oper­at­ing in Aus­tralia to report their dig­i­tal yuan trans­ac­tions to the cen­tral bank.

The stan­dards for cryp­tocur­ren­cy exchanges will also be lift­ed. Plat­forms 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, while its leader – Antho­ny Albanese – became the Prime Min­is­ter. Upon step­ping into that role, he vowed to bat­tle cli­mate change, reduce the spread of infla­tion, and impose com­pre­hen­sive rules on the cryp­tocur­ren­cy industry.

Accord­ing to Sen­a­tor Bragg, though, the rul­ing body has not tak­en any steps to reg­u­late the domes­tic dig­i­tal asset sec­tor yet. It needs to act fast, so Aus­tralia does not fall 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.”

Andrew Bragg
Andrew Bragg, Source: Lib­er­al Par­ty NSW

Crypto Ads Should be Limited, too

Over the past sev­er­al months, cryp­tocur­ren­cy firms have adver­tised them­selves and their prod­ucts dur­ing sports events or in pub­lic places. Such an exam­ple was the last Super Bowl, where the logos of Cryp­to­Com, Coin­base, and many oth­ers were seen around the stadium.

Sen­a­tor Bragg not­ed that sim­i­lar mar­ket­ing cam­paigns are present in Aus­tralia too. In his view, some ads were “giv­ing an impres­sion that they are offer­ing a reg­u­lat­ed prod­uct when they are not.”

As such, the domes­tic watch­dogs should pay atten­tion to that issue and only allow adverts that pro­mote reg­u­lat­ed com­pa­nies that ensure max­i­mum con­sumer protection.

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