Australia Rejects Crypto Regulation Bill 2023 Due To Lack Of Detail

Key Points:

• The Digital Assets (Market Regulation) Bill 2023 was declined by the Australian government.

Australia’s rejection of the Digital Assets (Market Regulation) Bill 2023 shows cautious approach to crypto regulation, despite increasing adoption and lingering uncertainty.

Recently, the Senate Economics Legislation Committee declined to approve the “Digital Assets (Market Regulation) Bill 2023” introduced by Senator Andrew Bragg. The bill aimed to provide a framework for digital asset oversight and establish licensing rules and custody requirements for crypto service providers in Australia. The committee cited a lack of detail and potential conflicts with the government’s existing approach as the reasons for the rejection.

The rejection of Bragg’s bill by the Australian government underscores the country’s careful approach to establishing cryptocurrency regulations, despite increasing adoption. Similar to governments around the world, Australia must navigate the challenge of balancing innovation with oversight in the rapidly developing digital asset industry. While not a complete prohibition, the decision to reject the bill demonstrates that Australia is proceeding cautiously with crypto regulation.

The government claims that they are currently in consultation with industry players to create a framework that is specifically tailored to their needs. However, the lack of a definite timeline leaves the country without legal guidelines as crypto innovation continues to progress. Earlier this year, Prime Minister Anthony Albanese had already initiated a separate consultation process for crypto regulations.

Australia has been lauded for recognizing the potential of Bitcoin, but regulatory oversight is still a work in progress. The cryptocurrency industry is eagerly awaiting the government’s next regulatory steps while grappling with lingering uncertainty.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.