Regulation
stablecoin included in the new crypto bill
Australian regulators are working to integrate the stablecoin regulations in their bill regarding the cryptocurrency sector.
A representative from the Australian Securities and Investments Commission said it has had meetings with regulators, such as the SEC, to discuss their legal positions on cryptocurrencies.
Let’s see all the details below.
New regulations coming to Australia: Cryptocurrency law includes provisions on stablecoins
As anticipated, Australian regulators recently provided updates on their plans for the digital asset sector.
Including the introduction of a draft regulation for stablecoins, and suggested increased action against unauthorized entities at an event in Sydney on Wednesday.
THE evententitled “Digital Assets: Anchoring the Digital Economy”, was organized by Blockchain Australia, the national reference body for the sector.
The Australian Treasury had previously announced its intention to publish draft legislation to establish licensing and custody regulations cryptocurrencies suppliers by the end of 2024.
Now, that draft could also include a regulatory framework for stablecoins. Chris Adamek, director of the digital assets policy unit at the Australian Treasury, said:
“The digital asset platform reforms are being developed in the Office of Parliamentary Counsel (responsible for drafting and publishing Australian laws) and the draft is expected to be published later this year. There are various reforms in the pipeline with different priorities, including those on payments that comprise the proposed framework for the regulation of stablecoins. These reforms could be implemented simultaneously thanks to their interconnection.”
The Australian Securities and Investments Commission (ASIC) said it was working with the government to provide advice to Treasury colleagues.
It also holds regular meetings with global counterparts, including the EU, Singapore, Malaysia, Hong Kong and North America, to better understand cases brought against digital asset companies.
ASIC warns: Crypto entities must align with existing regulations
Dr. Rhys Bollen, the senior digital assets executive at ASIC, commented the following:
“We are actively monitoring international cases and regularly collaborating with our colleagues abroad. This morning we had an hour-long phone call with the SEC to discuss their work and what we can learn from it. We have already handled half a dozen cases involving digital assets and have more in progress.”
The ASIC representative said it would continue to provide guidance, but underlined the importance of complying with the law, during a meeting with industry players:
“When was the last time you looked at the tokens listed on your platform? What about the products and services you offer? If you have not reviewed your legal paperwork in the last four months, it is essential to do so now.”
Bollen also announced that ASIC is preparing appeals against recent judicial decisions that favored crypto entities such as Block Earner and BPS Financial Pty Ltd (BPS).
Recently, ASIC has taken Binance Australia and social investment platform eToro in court, while the country’s major banks have introduced restrictions on cryptocurrencies to protect investors from fraud.
Blockchain Australia has changed its name to Digital Economy Council of Australia (DECA) and includes a category dedicated to banks.