Policy Update - September #1
RBA announces strategic commitment to wholesale CBDC work
At our Intersekt Fintech Conference in Melbourne last week, the RBA revealed its strategic focus on advancing wholesale digital money and infrastructure, prioritising a wholesale central bank digital currency (CBDC) over a retail CBDC. This initiative builds on the RBA's successful CBDC pilot in 2023, aimed at harnessing the potential efficiency gains of tokenised assets and markets for the Australian economy.
ASIC looking at a wider crypto licensing net
ASIC is preparing an update to Information Paper 225, expected by November, to clarify the regulatory treatment of particular crypto tokens and products. The regulator expects that a large number of crypto-asset firms will likely need a licence under the current law, as told by ASIC Commissioner Kirkland to the AFR Crypto and Digital Assets summit. Separately, the AFR has reported that the Albanese Government is currently drafting legislation to require crypto exchanges to hold financial services licenses and create rules for custody of digital assets, though it's unclear whether the Bill will be released before the Federal election.
Privacy Act Reform Bill
After a range of reports, inquiries and reviews, the Attorney-General has introduced the long-anticipated Privacy and Other Legislation Amendment Bill 2024 into Parliament. The Bill implements some of the recommendations of the Privacy Act Review Report, but many of the more significant proposed changes (such as the proposed removal of the small business exemption) have been left for future tranches, making the future direction of further privacy reforms uncertain. Some of the Bill's key items include:
requirements to include details of automated decision-making in privacy policies;
a statutory tort for series invasions of privacy;
a tiered penalty regime for contraventions of the Privacy Act; and
two new anti-doxxing offences.
AML and Counter-Terrorism Financing Amendment Bill 2024
The Australian Government has introduced the Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2024 into Parliament. This follows two rounds of industry consultation held in April 2023 and May 2024. The Bill aims to comprehensively overhaul Australia's AML/CTF regime by:
Expanding the AML/CTF regime to include “tranche 2” entities, such as lawyers, accountants, and real estate agents.
Updating regulations for virtual assets and payments technology.
Simplifying the regime to increase flexibility, reduce compliance burdens, and support businesses in preventing financial crime.
These changes will affect all AUSTRAC reporting entities, DCEs, new VASPs, and tranche 2 professions. Impacted businesses should prepare now to implement the necessary systems and processes for smooth compliance under the new regime.
We are working on the following submissions
We recently made submissions on:
CDR Rules: Consent and Operational Enhancement Amendments Consultation
Payments System Modernisation (Regulation of Payment Service Providers) consultation paper
See our recent submissions on our website.
FinTech Australia regularly makes submissions to consultations across a wide range of policy and regulatory issues. Communications about how to get involved in these processes are distributed to our Policy Working Group membership.
Lastly, thank you for the warm welcome from our community members as I step into the new role. I'm looking forward to meeting with many of you at Intersekt, but please feel free to reach out to me directly anytime for support.
Kind regards,
Katie Wilson,
Head of Policy,
FinTech Australia
