The Senate Select Committee on Australia as a Technology and Financial Centre has released its Final Report which focusses on the regulation of cryptocurrencies and digital assets.
The Report concludes that the current regulation of Digital Currency Exchanges, which is generally limited only to registration with AUSTRAC, is inadequate for businesses that in some cases are dealing with asset volumes in the billions of dollars. It argues that a properly designed Market Licence for this sector will assist the sector to mature and create confidence.
Its recommendations include
- the Australian Government establish a market licensing regime for Digital Currency Exchanges, including capital adequacy, auditing and responsible person tests under the Treasury portfolio.
- the Australian Government establish a custody or depository regime for digital assets with minimum standards under the Treasury portfolio.
- the Australian Government, through Treasury and with input from other relevant regulators and experts, conduct a token mapping exercise to determine the best way to characterise the various types of digital asset tokens in Australia.
- the Treasury lead a policy review of the viability of a retail Central Bank Digital Currency in Australia.
Its other recommendations include:
- the Australian Government, through the Council of Financial Regulators, enact the recommendation from the 2019 ACCC inquiry into the supply of foreign currency conversion services in Australia that a scheme to address the due diligence requirements of banks be put in place, and that this occur by June 2022.
- in order to increase certainty and transparency around de-banking, the Australian Government develop a clear process for businesses that have been de-banked.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
