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- 1 The Senate Economic Legislation Committee in Australia has dismissed the crypto bill.
- 2 Despite the urgency, the bill was rejected citing refinement and more amendments.
Crypto bill was dismissed even as industry players draw attention to the urgent need for such legislations. Andrew Bragg drafted a crypto bill and it is not approved by the committee. He said that this rejection would negatively affect society.
On the other hand, the committee states that the Australian Government will continue to consult with the industry on the development of crypto regulations in Australia. Western Australian Senator Dean Smith has co-authored the bill, and Bragg primarily made it.
The Bill Clarity Regarding Digital Assets
According to Bragg and Smith, the government’s stance regarding this bill is hurting Australian consumers and investments. The rejection of the bill keeps Australia away from the set of well-defined crypto regulations.
The bill includes complex matters with clarity covering auditing and segregation of funds to proof of reserves and satisfying the reporting duties. It also includes the clear definition of digital assets, exchanges, and stablecoins to provide clarity for regulations and certainty.
Joni Pirovich, the Australian lawyer and consultant claimed that the delay in implementation of regulations is affecting the country’s economy. He said that he would be more cruel. Rather than traditional finance and these opportunities around CBDC and stablecoins, there has been a huge exit of talent and capital from Australia since around the middle of 2022.
Andrew Bragg introduced the bill on March 28 with the Tweet – “ Today I will introduce the bill which will regulate the digital bill in Australia. The Labor government has failed to act.” He believes that putting regulations will strengthen the economy of Australia and strengthen innovation.
Both the authors of the Digital Assets Bill have expressed a supportive view towards the bill offering slight amendments like removing non-fungible tokens (NFTs) from the definition of regulated digital assets.
Crypto Bill Authors Requested to Review Tax Treatment
Bragg and Smith requested the Board of Taxation to review the tax treatment of digital assets and transactions in Australia to introduce legislation in early 2024. They also added that the government should execute the advice of the Council of Financial Regulators for potential policy responses to debanking in Australia.
Previously, the Australian Department of the Treasury admitted that the growing tendency of banks to restrict cryptocurrency services could lead to unwanted results which may make the industry less transparent.
Authors of the bill added that the rejection of the bill is devastating for Australian consumers and this will harm the crypto industry and investments. They also state that this is the very first step towards the digital asset regulatory framework.
The report on the bill was initially planned to be provided by August 2 but looked for an extension of the reporting date to August 16. The date was then extended to August 25 and then finally the report came on September 4.
Summary
The long-awaited crypto bill which clarifies the regulatory framework for digital assets was rejected. The co-authors of the bill – Andrew Bragg and Senator Smith said that this bill has included all the complexities straightforwardly and it is the very step for crypto regulations. The Australian lawyer Joni Pirovich said that the rejection will affect the Australian economy.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
