Regulation
Australian Treasury to include stablecoin rules in draft cryptocurrency bill and ASIC warning for crypto entities
Australian regulators have provided rare updates on their plans for the digital asset sector, including plans to introduce a draft framework for stablecoins, and hinted that more checks against unlicensed entities are on the way at an event in Sydney on Wednesday.
Australian Treasury previously announced plans publish draft legislation to cover licensing and custody rules for cryptocurrency providers by the end of 2024. Now, that draft could include a framework to regulate stablecoins.
“A drafting position has been assigned to the reform of the digital asset platform The Office of the Parliamentary Advisor (responsible for drafting and publishing Australian laws) which would see the exposure draft released by the end of this year,” said Chris Adamek, director of the Australian Treasury’s digital assets policy unit.
“Within this drafting period, there are various reforms and each has a different priority than payments reforms, which would include our proposed framework for stablecoin regulation within the same space, and will be somewhat made one after the other. Since they overlap, representatives hope that both will be released at the same time.”
The Australian Securities and Investments Commission (ASIC) said it was assisting the government in providing advice to Treasury colleagues and would have regular meetings with counterparts around the world, including the EU, Singapore, Malaysia, Hong Kong and North America to understand more about the cases they have filed against digital asset companies.
“We are actively monitoring cases overseas and regularly engaging with our overseas colleagues,” said Dr Rhys Bollen, senior executive leader of digital assets at ASIC. “We had an hour on the phone with the SEC this morning to talk about the work they are doing and what we can learn from it. We have already covered half a dozen cases that interact with digital assets and cryptocurrencies. Asset base and we have moreover.”
Additionally, the ASIC representative said it has and will provide guidance, but is also subject to the law, warning crypto entities to align with precedents set in recent cases brought against crypto entities in front of an audience of industry traders.
“When was the last time you reviewed the tokens you list on your platform? When was the last time you reviewed the products and services you are making available? How recently did you consult with your lawyers about where the law currently views the most current understanding based on the cases of the last six months or so you have not done this in the last four months you have to consider where you are,” Bollen said.
Bollen also said ASIC will appeal recent rulings which, at least in part, were in favor of crypto entities like Block Earner AND BPS Financial Pty Ltd (BPS). In recent times, ASIC has been suing Binance Australia and social investment platform eToro, while the nation’s major banks have imposed partial restrictions on cryptocurrency-related scams.