Australian Senate calls for stablecoin regulation

Andrew Bragg, a Liberal Australian Senator from New South Wales, has drafted a stablecoin regulation bill that could put the local crypto sector under strict supervision.

If accepted, the legislation would require cryptocurrency exchanges and stablecoin issuers to disclose their operations to authorities, while Chinese banks dealing with digital yuan in Australia would also face enhanced scrutiny.

Australian Senator: Australia must act quickly
In a recent speech at the Blockchain Associations Forum, Senator Prague saw that it was time for the crypto industry to come out of the shadows and into the light.

He also touched on the collapse of the Terra crypto project, and introduced a bill that would primarily focus on stablecoin issuers.

Before offering products to consumers, they will need to obtain a special license from Australian monitoring authorities.

In addition, these companies will be required to have a reserve in local and foreign currency so that customers can be compensated in the event of a meltdown.

Senator Prague's bill would also require a group of Chinese financial institutions operating in Australia to report their digital yuan transactions to the central bank.

Cryptocurrency exchange standards will also be raised.

The platforms will have to ensure maximum transparency in their activities, segregate client funds, and take all necessary cybersecurity measures.

In May this year, the Australian Labor Party won a government election, while its leader, Anthony Albanese, became prime minister.

Upon taking office, he pledged to fight climate change, curb the spread of inflation, and impose sweeping rules on the cryptocurrency industry.

According to Senator Prague, the governing body has not taken any steps to regulate the local cryptocurrency sector so far.

According to him, you must act quickly, so that Australia does not lag behind other countries.

He added:

Australia is in a race to protect the consumer and attract capital and innovation.

The government is trying to make the impression that it is doing something when in fact it is not.