Murray Watt (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Hansard source

I'm an old-fashioned banking guy, I'm afraid. The most common way for Australians to access these tokens is through digital asset platforms. These platforms hold billions of dollars of assets for Australians, exposing them to significant risk. Collapses of digital asset platforms both locally and globally have seen Australians lose their assets or be forced to wait their turn amongst long lines of creditors. The Albanese government's reforms seek to reduce the risk of these collapses happening by lifting the standard of their operations and increasing their oversight. Further regulation will achieve three goals: firstly, introducing a framework for industry innovation and growth; secondly, providing certainty and clarity for industry; and, thirdly, protecting consumers and their assets. Consultation is currently being undertaken, and the feedback from industry so far has been positive.

This is in stark contrast to the feedback on Senator Bragg's bill. As the Senate Economics Legislation Committee inquiry report shows, Senator Bragg's bill 'is at odds with the measured and industry accepted approach the government is undertaking to ensure that current and new regulations are well considered and effective in supporting consumers and the digital assets industry'. The bill 'lacks the detail and certainty that investors, consumers, and the industry' require. The bill 'fails to interoperate with the established regulatory landscape', creating a regulatory arbitrage concern and resultant adverse outcomes for consumers. The bill would add unnecessary complexity between its proposed licensing regime and existing Australian financial services licensing requirements. The bill would create undue regulatory burden by establishing multiple licence categories, and it leaves significant details to delegated legislation which has not been presented with the bill for consideration.

The Albanese government's regulation proposal will seek to leverage existing Australian financial services laws. It would require digital asset platforms that hold over a certain threshold of Australians' assets, being $1,500 for an individual or $5 million in aggregate, to obtain an Australian financial services licence. The Australian financial services laws are a time tested and well-understood framework to mitigate risks involving businesses holding or utilising clients' assets. Digital asset platforms would need to meet all general licence obligations, consistent with other licence holders.

The Albanese government's focus in this space is born out of our commitment to better regulate for consumers. Australia's regulators are strengthening their focus on crypto-asset providers to make sure they meet their obligations to Australian consumers. The Australian Securities and Investments Commission has increased the size of its crypto team and is strengthening enforcement measures. The regulator is taking legal action where it identifies crypto offerings being marketed without the appropriate credit or financial services licence. ASIC is also ensuring that risks to consumers are appropriately disclosed. Digital currency exchanges are regulated by AUSTRAC under the Anti-Money Laundering and Counter-Terrorism Financing Act for the purposes of preventing and detecting money-laundering and terrorism financing. The Australian Competition and Consumer Commission is also stepping up efforts to prevent scams, including those involving crypto-assets.

As I say, we're also focused on reducing scams. In 2022, Australians lost an estimated $3.1 billion to scams, an increase of nearly 80 per cent compared to 2021. I want to commend the Assistant Treasurer, Stephen Jones, who I know has put a lot of work into the issue of scams, which is confronting so many Australians. Of that total, the ACCC's Scamwatch noted that more scammers are seeking payment via crypto, with reported losses via this payment method totalling $221 million in 2022. That's a 162 per cent increase from a year earlier.

The government has committed to taking action to combat scams and online fraud. To support this commitment, the government is providing $86.5 million in funding for a range of measures, including to establish the National Anti-Scam Centre in the ACCC as a world-leading partnership between government agencies and industry, facilitating real-time data sharing and coordinating the prevention and disruption of scams. The centre will also raise consumer awareness about the risks of scams. The National Anti-Scam Centre commenced operations on 1 July this year. In addition, we're boosting work by ASIC to identify and take down investment scam websites. Investment scams related to crypto are a significant component of the total number of scam websites. Finally, we're introducing new industry codes outlining the responsibilities of the private sector, including banks, telecommunications firms and digital platforms, in relation to scam activity, including crypto scams.

As you can see, Mr Deputy President, the Albanese government does take these issues seriously. There is a range of work underway. But, for the reasons I've outlined, we won't be supporting this bill. It comprehensively fails to deal with the real issues, including those that were ventilated at the Senate Economics Legislation Committee inquiry.