Australia’s parliament is currently considering a new bill, proposed by Senator Andrew Bragg, that aims to create a licensing system for cryptocurrency trading platforms. According to Bragg, the lack of clarity around cryptocurrency regulations has led to the urgent need for appropriate legislation through parliamentary action.
The bill proposes three different types of licenses for exchanges, custodians, and stablecoin issuers like Tether. Bragg emphasizes the importance of swift action to ensure proper regulation, contrasting this approach with the more secretive approach taken in the United States.
This move by Australia comes in the wake of legal proceedings initiated by American regulators against Binance and Coinbase, two of the world’s largest cryptocurrency trading platforms.
Binance, which is the biggest cryptocurrency trading platform globally, is facing a lawsuit from US authorities for allegedly operating illegally in the country and violating financial statutes. The Securities and Exchange Commission (SEC) has issued a Wells notice to Coinbase, warning about potential breaches of US securities regulations.
Earlier this year, the Australian government published a consultation document on token mapping. The document sought to identify the current state of the token market in Australia, as well as the potential regulatory challenges that may arise.
The proposal for a licensing framework for cryptocurrency trading platforms represents a continuation of this effort to establish clear and comprehensive regulations for the cryptocurrency industry in Australia.
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