Weekly Update: 20 October 2023

“Collapses of crypto platforms, both locally and globally, have seen Australians lose their assets or be forced to wait their turn amongst long lines of creditors. The proposed reforms seek to reduce the risk of these collapses happening by lifting the standard of the operation of platforms and increasing oversight.” 

– Treasurer Jim Chalmers and Assistant Treasurer Stephen Jones jointly announce the regulation of digital and crypto assets

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Parliamentary Update:

• Treasurer Jim Chalmers and Assistant Treasurer Stephen Jones released a proposal paper on the regulation of digital and crypto assets.  
• The Identity Verification Services Bill 2023 was debated in the House of Representatives, with Shadow Minister Paul Fletcher stating: “…there are too many unknowns for the opposition to support these bills as they stand. We will consider our position carefully, including through the committee process.” 
• The Treasurer announced the opening of consultation on exposure draft parliamentary amendments to the Treasury Laws Amendment (Making Multinationals Pay Their Fair Share – Integrity and Transparency) Bill 2023. 
• The Prime Minister Anthony Albanese convened National Cabinet virtually to endorse the National Skills Agreement, and noted the shared challenges of skills shortage in every state and territory.   
• Small Business Minister Julie Collins authored an opinion piece on how small business is critical to Australia’s cyber security strategy. 
• Assistant Minister Andrew Leigh spoke at a joint Treasury – e61 Institute Webinar, discussing the Federal Government’s competition review, competition reforms, productivity challenges, and non-compete clauses.  

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Policy Update:

The ABA: 

• along with members, attended the latest Broome Circle banking roundtable. Over the past year the ABA and banks have worked with the Broome Circle on local solutions including community ID cards developed by the Djarindjin Community when First Nations customers don’t have driver licenses; new fee-free ATMs in Ardyaloon and Djarindjin, as part of the ABA’s fee-free ATM program; and a forum to share information about natural disaster support with communities affected by the Kimberley floods. Financial Counselling Western Australia will lead the work going forward as the initiative expands statewide. ABA CEO Anna Bligh spoke to local media outlet Goolarri Radio about these issues following the roundtable. 
• represented the banking industry at the Australian Financial Security Authority’s (AFSA) Annual Summit, with ABA’s Head of Economic Policy Emma Penzo outlining the hardship measures available to customers from their banks.   

• facilitated a virtual briefing session for members on the Australian Government’s work relating to the Taskforce on Nature-related Financial Disclosures by the Department of Climate Change, Energy, the Environment and Water and EY. 
• attended the Digital Identity Sprint, hosted by NAB. The full-day event involved a mix of workshop style sessions, a panel discussion on the draft Digital ID Bill and Rules, and guest speakers including Jason Urranndulla Davis, Founder of Hold Access, a First Nations-led company developing a digital wallet. 

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Regulatory Update:

• APRA released its 2023 authorised deposit-taking institutions points of presence statistics.  
• The RBA welcomed the publication of Harmonised ISO 20022 Data Requirements to Enhance Cross-border Payments. 
• ASIC Chair Joe Longo gave a speech on ‘Crypto-assets: The case for strong regulation and enforcement’ at the AFR Cryptocurrency Summit. 
• RBA Governor Michele Bullock spoke at the AFSA Annual Summit panel.  
• ASIC released findings from its first integrated financial reporting and audit surveillance program.   
• ASIC Executive Director for Regulation and Supervision Greg Yanco gave a regulatory update at the 33rd Annual Credit Law Conference. 
• ASIC made ASIC Corporations and Credit (Amendment) Instrument 2023/589. 

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Economic Update:

• The unemployment rate dropped to 3.6% from 3.7% in August. Underemployment also decreased to 6.4% from 6.5%. 
• Underemployment is substantially higher for younger people, with around a quarter of employed 15–19-year-olds seeking more hours of work, Figure 1. 

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Communications and Media:

The ABA issued a media release in support of the Federal Government’s action to regulate crypto exchanges, saying it is a “very welcome step in the fight against scams”. The ABA was quoted on this issue in media outlets including The Australian, ABC and SBS TV news. Read the media release here. 

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Events:

The ABA will hold its inaugural Future of Banking webinar on 30 October where guest speaker, EY’s Asia-Pacific Quantum Technology Leader, Alexey Bocharnikov will clarify the maze of quantum hacking, distinguishing myth from reality. The webinar series is accessible to members, associate members, and connections of the ABA. Register here. 

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Upcoming Submissions:

Published submissions

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Selected Media:

• SMH – Banks see thousands of attacks a minute. Here’s how they stop them  
• AFR – Crypto exchanges to be regulated under bolstered licence regime  
• The West Australian – Broome CIRCLE Banking Roundtable to roll out Statewide initiative after grassroots success  
• AFR – NAB, CBA switch on digital identity checking service  
• The Australian – Deepfakes, social media scams hit CBA and its bankers  
• The Australian – ‘Shock after shock after shock’: RBA’s inflation challenge  

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