Inquiry into the Digital Assets (Market Regulation) Bill 2023
The Financial Services Committee and the Digital Commerce Committee of the Business Law Section of the Law Council of Australia (the Committees) has provided a submission to the Senate Standing Committees on Economics in relation to the Digital Assets (Market Regulation) Bill 2023 (the Bill).
The Committees endorse a regulatory approach that maintains an appropriate equilibrium between the vast opportunities presented by the digital asset ecosystem on the one hand and the imperative of prudential risk management on the other.
The Committees also consider that international practices in regulating the digital asset ecosystem should be considered when developing the Australian framework, allowing for a harmonious convergence of domestic and foreign regulatory frameworks.
The problems which the Bill seeks to solve are:
- the present lack of clarity of the regulatory perimeter for digital assets; and
- the lack of regulation of certain activities relating to digital assets that fall outside current licensing obligations. Greater clarity is required for businesses to thrive, and consumers to be protected e.g. from scams and bad actors.