Statement on the Senate Report - Digital Assets (Market Regulation) Bill

Today, the Senate Economics Legislative Committee tabled its Report on the Digital Assets (Market Regulation) Bill 2023.

Digital assets have the potential to disrupt traditional financial services and provide better options for Australian consumers with cheaper prices, provided the market is fitted with the proper safeguards.

The benefits of digital asset regulations are twofold: they protect consumers and promote market investment and activity. This was why these regulations were placed on the legislative agenda by the former Liberal Government in October 2021.

If Labor hadn’t abandoned our legislative agenda, these proposed regulations would be the law. By restarting the consultation process, Financial Services Minister, Stephen Jones, has shown that Labor has no plan to regulate crypto.

Minister Jones’ choice to go back to the starting block holds two major consequences for the Australian market. First, it has left consumers exposed to the risks of an unregulated market. Second, it has driven investment offshore.

The Bill demonstrates an Australian crypto bill is entirely viable. Waiting on the government to act is not an option. That is why the Senate should move to debate and pass this Bill.

When governments have failed to move on proper inquiries into the financial sector, the Senate has forced their hand. The Senate should do the same on crypto regulation.

Enacting a law will end policy through grudge enforcement. Until there are laws, ASIC will continue using its tools in the void.

Labor’s approach will damage existing and new investments designed to bring competition to Australia. The failure to legislate is driving investment offshore.