Andrew Bragg, a senator for the Australian Liberal Party has written a bill to regulate stablecoins, crypto exchanges, and the Chinese digital yuan.
The new bill, known as the Digital Assets (Market Regulation) Bill, aims to “open the way to increased investment and development in Australia’s crypto ecosystem and virtual economy,” according to a September 19 story from Financial Review.
The measure makes it illegal to create stablecoins without a license and requires stablecoin issuers to maintain reserves in an Australian bank, report quarterly to authorities, and be subject to audits.
According to the MP, the digital yuan poses a danger to Australia’s national security, and nations in the Pacific area must be prepared. The number of Australian companies accepting e-Yuan payments, the number of Australian digital wallets opened, and the total amount of e-Yuan in those wallets are all required under the proposed legislation.
“If this money becomes prevalent throughout the Pacific, or even in Australia, the Chinese government would have huge economic and geopolitical influence that it does not now possess. Hence, I believe we must be prepared for this. We need more information about this digital money, thus the measure imposes reporting obligations,” he added.
The worldwide emphasis on the e-Yuan aligns with China’s crackdown on virtual currencies. However, according to recent research, the nation ranks ninth worldwide for crypto usage. In the meanwhile, China’s Central Bank has lately advocated for broader use of the digital yuan in order to ease connectivity.