Australian Bitcoin Industry Body Urges Caution Over Digital Assets (Market Regulation) Bill 2023
The Australian Bitcoin Industry Body (ABIB) has expressed significant concerns regarding the proposed Digital Assets (Market Regulation) Bill 2023, urging lawmakers to consider the unintended consequences it may have on the Bitcoin-Only sector in Australia.
The submission can be downloaded.
Media Release
For Immediate Release
May, 2023
Contact: Jeremy Majid, CEO, Australian Bitcoin Industry Body
Email: media@bitcoinindustrybody.org.au
Website: www.bitcoinindustrybody.org.au
Australian Bitcoin Industry Body Urges Caution Over Digital Assets (Market Regulation) Bill 2023
Sydney, Australia – The Australian Bitcoin Industry Body (ABIB) has expressed significant concerns regarding the proposed Digital Assets (Market Regulation) Bill 2023, urging lawmakers to consider the unintended consequences it may have on the Bitcoin-Only sector in Australia.
In its submission to the government, ABIB highlighted that its member exchanges operate exclusively within the Bitcoin-Only ecosystem, distinct from the broader “crypto” space. The Bill, which seeks to regulate digital assets broadly, applies sweeping regulations to Bitcoin exchanges, despite the industry’s established practices in safeguarding consumers from many of the risks present in the adjacent crypto market.
“Our Bitcoin-Only exchanges have been responsibly operating in Australia for years, ensuring customer protection through a focus on self-custody and avoiding risky ‘crypto’ products,” said Jeremy Majid, CEO of ABIB. “This Bill, in its current form, imposes unnecessary and onerous regulations that could stifle innovation and discourage investment.”
Focus on Consumer Protection
ABIB’s member exchanges have built their reputation on promoting the self-custody of Bitcoin, encouraging users to take control of their assets rather than leaving them vulnerable on exchanges. This practice has insulated customers from the collapse of high-profile crypto exchanges like FTX. ABIB asserts that these proactive measures make further regulation redundant.
“There is no need for additional regulation in the Bitcoin-Only industry,” said Majid. “Our exchanges have voluntarily avoided risky practices common in the crypto sector, such as yield farming and token exchange. By focusing on Bitcoin alone, we have protected our customers from the types of losses that have plagued the wider crypto ecosystem.”
Concerns Over Ambiguity and Burdensome Compliance
The submission raises concerns about the Bill’s lack of clarity on capital requirements for digital asset exchanges, the short transition period, and the severe penalties proposed for non-compliance, including potential imprisonment. ABIB notes that such provisions could disproportionately harm smaller Bitcoin-Only businesses, which operate differently from broader crypto exchanges.
“This Bill introduces the threat of five-year imprisonment for non-compliance, which is an extreme penalty, especially given the lack of clarity on how the capital requirements will be implemented,” Majid explained. “These measures are not aligned with the goal of promoting investment and innovation in Australia.”
Call for Exclusion of Bitcoin-Only Exchanges
ABIB has called for the exclusion of Bitcoin-Only exchanges from the Bill, noting that their operational models differ significantly from other digital asset platforms that engage in more speculative activities. The submission argues that Bitcoin-Only exchanges should continue to be regulated by AUSTRAC, as has been the case, rather than being shifted to ASIC under the proposed Bill.
Conclusion
ABIB urges lawmakers to revise the Digital Assets (Market Regulation) Bill 2023 to reflect the unique nature of the Bitcoin industry, ensuring that regulation fosters innovation and consumer protection without imposing unnecessary burdens. Failure to do so, ABIB warns, could hinder the growth of Bitcoin in Australia, pushing innovation offshore.
For further inquiries or interview requests, please contact:
Jeremy Majid
Email: info@bitcoinindustrybody.org.au
