Australian Senate Rejects Digital Assets Bill

The Australian Senate Economics Legislation Committee rejected opposition senator Andrew Bragg’s Digital Assets (Market Regulation) Bill 2023.

It recommended that the government “continue to consult with industry on the development of appropriate digital asset regulation in Australia.”

The committee’s report reflects party affiliation. Bragg, who represents New South Wales, criticized the rejection, stating that the Labor administration “put crypto regulation in slow motion.”

The committee stated that the measure lacked specificity and was inconsistent with the government’s approach.

It was noted that the action was “inconsistent with international regimes” and caused “genuine concern for regulatory arbitrage and negative industry outcomes.”

In February, Prime Minister Anthony Albanese introduced a token mapping consultation paper through the Treasury, which was due to be followed by a separate consultation paper proposing a licensing and custody framework for crypto asset service providers by mid-2023.

However, this has not yet occurred.

“The Senate Committee was expected to issue a report on this bill more than a month ago, and the industry has anxiously awaited Treasury consultation on crypto-custody and licensing,” said Blockchain Australia Chair and Digital Assets Lawyer Michael Bacina.

This consultation should build on the industry comments published in the Senate Committee’s review of this bill.

The central bank initiated a pilot test to investigate potential use cases for Australia’s CBDC. It concluded last month that “any judgment on a CBDC in Australia will likely be several years away.”