A Senate Committee has called for a delay in the government’s Digital Assets Bill crypto regulations. 

A Senate committee has recommended that the passage of the Digital Assets (Market Regulation) Bill 2023 be postponed, urging the federal government to engage in further consultations with the market to create more effective digital asset regulations.

In its report - accessible in PDF - the economics legislation committee highlighted that the bill, initially presented in April, is not in alignment with the government's current approach. 

It cited a lack of detail, certainty, and compatibility with existing regulations as significant concerns. 

According to the committee, these issues could lead to regulatory arbitrage and adverse consequences for the industry.

“The committee does not consider the bill to be the appropriate vehicle to implement digital asset regulation in Australia,” it said. 

Instead, it called for well-designed regulation that balances consumer protection and industry development while clarifying the application of existing laws and addressing regulatory gaps.

The report also noted that stakeholders expressed concerns about the bill's definitions and delegated licensing requirements, which lacked essential details.

However, dissenting voices within the coalition, specifically Liberal Senators Andrew Bragg and Dean Smith, disagreed with the committee's recommendation. 

They see the bill as a crucial step toward establishing a comprehensive digital asset regulatory framework. 

They argue that abandoning the bill would harm cryptocurrency investors and hinder the broader application of cryptography and blockchain technology.