A private bill to expedite crypto regulations: What does this mean for traders?

As cryptocurrency trading continues to increase in popularity, it is important for industry players to stay informed of any new regulations and laws that may impact their trading activity. Recently, a private bill was introduced with the purpose of expediting crypto regulations in order to create an environment conducive to innovation and investment. In this blog post we will discuss what exactly this private bill entails and how it could affect traders as well as other related institutions operating within the space.

Senator Andrew Bragg has put forward a bill that would establish stringent yet necessary regulations for the cryptocurrency sector in Australia.

The Australian Parliament has presented a new bill to establish rules and regulations governing the delivery of cryptocurrency services throughout Australia.

Senator Andrew Bragg has recently presented a private senators’ bill, the Digital Assets (Market Regulation) Bill 2023, in order to safeguard consumers and foster investments. This bills outlines regulatory advice for stablecoins as well as the licensing of exchanges plus custody requirements.

Australian ministers are the usual catalysts of proposed regulatory changes, but as specified by the Parliamentary Education Office, members and senators can present private member’s or senator’s bills. Though these proposals may take a prolonged period to pass through parliament.

Bragg imparted more details on the proposition of a private bill, reproaching the present Labor government for not executing twelve suggestions pertaining to cryptocurrency regulation as recommended by The Senate Select Committee on Australia as a Technology and Financial Centre in October 2021.

The senator further noted that the lack of action from the Australian government to establish regulations for this sector left citizens vulnerable and exposed in cases such as FTX’s collapse.

“Australia can be a digital asset hub whilst protecting digital asset consumers. But we must act now.”

By creating a regulatory framework for cryptocurrency exchanges, custody services and stablecoin issuers, this act endeavours to safeguard customers while concurrently stimulating investment.

Additionally, this information seeks to provide clear guidance for authorised deposit-taking institutions when reporting on the process of releasing and managing a digital currency from a central bank.

If the bill is approved, any individual or business running a cryptocurrency exchange, cryptocurrency custody service, or stablecoin issuer in Australia must obtain a license from either the Australian Securities and Investments Commission (ASIC) or an overseas governing body.

This bill outlines a series of duties and requirements for exchanges, custodial services and stablecoin issuers. These can range from capital or reserve mandates to the separation of customer finances, audits on client possessions, reporting, assurance procedures and disclosure processes.

The Australian government is currently engaging the public regarding how to categorize cryptocurrencies, digital asset tokens and other related platforms. In February, a “token mapping” consultation paper was issued offering essential definitions for this sector of technology.

Understanding how to classify and accordingly report any taxable cryptocurrency transactions can be a difficult task, and mistakes often lead to the demands of additional taxes. Thankfully, anyone dealing with digital currency in Australia now has access to Crypto Tax Calculator Australia – an essential tool that allows users to easily calculate their crypto tax liabilities and make sure all required payments are made. With some basic knowledge of cryptocurrency tax principles, using the Crypto Tax Calculator Australia is quick and straightforward – meaning everyone can better understand and implement proper crypto taxation as required by law. Ultimately, Crypto Tax Calculator Australia helps reduce the burden associated with digital currency taxes in Australia – creating a more accessible platform for average users across the country.