He took the opportunity to announce to the Conference that he released a private member’s bill that proposes to regulate crypto exchanges and stablecoin issuers as well as place disclosure duties on banks dealing with digital yuan in Australia.
• The Bill (if enacted in its current form) requires a person or entity to hold a licence to:
- operate a digital asset exchange (i.e., a facility through which one or more of the following kinds of exchanges are regularly made
- (a) exchanges of digital assets for currency;
- (b) exchanges of digital assets for other digital assets;
- (c) exchanges of currency for digital assets);
- provide a digital asset custody service (i.e. a service that relates to the safekeeping, servicing or management of a digital asset); or
- issue stablecoins (i.e., a digital asset that is designed to maintain a stable value relative to a particular unit of account or store of value).
• There will be an electronic and publicly available register relating to licenses.
• The Bill sets out additional licence requirements that accompany the operation of a digital asset exchange, provision of a digital asset custody service or the issuance of a Stablecoin (e.g. minimum capital requirements, cyber security, record keeping, quarterly statements to APRA, development of a tailored plan to protect persons holding Stablecoins etc).
• The Bill requires certain banks to comply with reporting requirements if the relevant bank has facilitated the availability or use of Digital Yuan within a 12-month period. “Digital Yuan” refers to China’s new “e-CNY”, which is a digital version of the Yuan currently being piloted in China. It is one of the only central bank digital currencies offered by a major economy.
• The Bill prescribes “Digital Yuan Reporting Requirements” which include requirements for the reporting of:
- The number of Australian businesses that have accepted payments using digital Yuan that are facilitated by the designated bank;
- The number of open digital wallets for Australian customers of the designated bank; and
- The total amount of digital Yuan held in digital wallets.
• Consultation on the Bill is open to the public until 31 October 2022. Senator Bragg will introduce the Bill when parliament next sits.
BLOCKCHAIN ASSOCIATION FORUM SUMMIT
– THE RACE TO REGULATE
Media Release, Speeches