Australian lawmakers send back crypto bill, calling for amendments

Australia's Senate Committee on Economics Legislation has finally provided feedback on the cryptocurrency bill introduced by Senator Andrew Bragg. The committee has called for several amendments to be made to the bill, titled "The Digital Assets (Market Regulation) Bill 2023".

Amendments proposed

The Senate committee has recommended passing the bill with minor changes, including removing the term nonfungible tokens (NFTs) from the definition of regulated digital assets. Additionally, the committee has asked for certain asset-based tokens, such as the Gold and Silver Standard and the BetaCarbon Token, to be excluded from the definition of stablecoin. The committee also proposes extending the transition period from three to nine months.

Tax treatment of digital assets

The Senate report urges the Board of Taxation to review the tax treatment of digital assets and transactions in Australia. The goal is to introduce legislation in early 2024 to address any concerns. This move comes as the Australian Department of the Treasury has acknowledged that banks cutting services to cryptocurrency firms could have negative consequences, potentially driving the industry underground.

Criticism of the government's approach

The Senate committee has criticized the government's approach to digital asset regulation, stating that it is harmful to Australian consumers and investment. They believe that Senator Bragg's bill is the first significant step towards implementing a comprehensive digital asset regulatory framework and claim that the government has abandoned the ambitious crypto agenda of the previous liberal government.

Background of the bill

Senator Bragg introduced the "Digital Assets (Market Regulation) Bill 2023" in March. The aim of the bill is to protect consumers and promote investor confidence. It provides regulatory recommendations for stablecoins, licensing of exchanges, and custody requirements.

Delays in the report

The Senate Committee's report was released later than originally expected. The committee sought several extensions to the reporting date, with the final deadline being September 4th.