Australia’s new Digital Asset Bill has sparked pushback from the cryptocurrency industry, who argue it oversteps ASIC’s legal boundaries and could stifle innovation. The bill aims to regulate digital assets, but critics believe its definition of ‘digital asset platform’ blurs lines between securities and commodities like Bitcoin. Key points include:
* **ASIC’s Scope:** The bill grants the Australian Securities & Investments Commission (ASIC) powers beyond those outlined in existing law, potentially transforming it into a commodity regulator. This impacts cryptocurrencies that are treated differently from financial products or securities.
* **Blurred Lines:** Critics argue the broad definition of ‘digital asset platform’ could regulate both decentralized assets and speculative tokens under ASIC oversight. This could classify Bitcoin alongside other financial instruments like ETFs or futures.
* **Industry Concerns:** Industry voices raise concerns over the potential impact on smaller exchanges, as well as consolidation of power within larger platforms backed by banks and institutions. They warn this could increase systemic risks rather than mitigating them.
The bill has come under fire following FTX’s collapse, which critics attribute to fraud rather than a lack of regulation or licensing. Other industry failures like the ASIC-licensed Shield Master Fund also illustrate these challenges. To read more about the crypto market and related news, visit DeFi Planet, follow us on social media platforms like Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.