Andrew Bragg, an Australian senator, has advanced a bill to regulate the local crypto market. Will it really “protect consumers and promote investors”?
Reports have emerged of the Australian government taking steps to tighten regulations on cryptocurrency in the Pacific nation. This has raised concerns among the cryptocurrency community. Many fear these actions could hinder the innovation and adoption of digital currencies.
One of the reasons for the government’s proposed crackdown is the need to combat financial crime. The use of cryptocurrencies in money laundering and other illegal activities has raised concerns for many governments worldwide. Australia is no exception.
Countering Bad Actors
The Australian Transaction Reports and Analysis Centre (AUSTRAC), the country’s financial intelligence agency, monitors the use of cryptocurrencies for illegal doings. According to a 2020 report by the agency, the use of cryptocurrencies for money laundering and other financial crimes is on the rise in Australia.
In response, the government introduced new legislation requiring cryptocurrency exchanges operating in the country to register with AUSTRAC. Further, they must comply with anti-money laundering and counter-terrorism financing (AML/CTF) rules.
This move is welcome for many in the industry. It will help legitimize cryptocurrencies in Australia and make it easier for individuals and businesses to use them for legitimate purposes. However, there are concerns that the new regulations could be too strict and stifle innovation.
One proposed regulation is a ban on anonymous cryptocurrency transactions. This means that all transactions must be traceable back to their source. This could be problematic for individuals who value their privacy and want to use cryptocurrencies for anonymous transactions.
Another potential issue is the proposed ban on certain types of cryptocurrencies, such as privacy coins like Monero and Zcash. These coins are designed to provide users with increased privacy and anonymity but some have linked them to illegal activities.
While the government has not yet confirmed whether it will implement a ban on privacy coins, many in the industry fear that such a move would be counterproductive. This could drive innovation and the development of digital currencies underground.
Senator Andrew Bragg is ramming through strict new legislation to correct what he sees as a need for more oversight of crypto. Hence the Australian Parliament has weighed a new bill proposing regulations for cryptocurrencies.
In a March 28 tweet, Bragg proclaimed, “Today I will introduce a bill to regulate digital assets in Australia. The Labour Government has failed to act.” He went on to say that Australia’s parliament needs to take decisive action to protect citizens and promote investment.
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