According to reports in the country’s media, Australia is part of the government’s work to modernize the country’s financial system. bitcoin and cryptocurrency preparing to regulate the industry.
New Regulatory Framework to be Established in Consultation with Crypto Industry Representatives
On March 21, authorities will release documents that will outline how Australia’s crypto industry will be regulated.
Authorities will consult with industry representatives on issues related to cryptocurrency storage and market licensing.
The country’s Treasury Department will require local crypto exchanges to keep their customers’ crypto holdings within the country.
Along with the new reforms, issues such as crypto taxation and investor protection will also be addressed.
“Crypto Assets Will Be Taxed Without Increasing the General Tax Burden”
The Tax Board (BoT) will review an appropriate policy framework for taxation of digital transactions and assets in Australia and will report to the government by the end of this year.
The government has announced that it will try to tax cryptocurrencies without increasing the overall tax burden of BoT.
Financial Services Minister Jane Hume said in a statement that the government wants the Australian crypto industry to operate within a safer and more secure regulatory framework.
The Council of Financial Regulators (CFR) and the Australian Competition and Consumer Commission have been tasked with examining “banking out” in the digital fintech space.
That regulatory framework will be based on a parliamentary report by Senator Andrew Bragg. Australian Treasury Secretary Josh Frydenberg supported this plan in his statement in December.
“We Should Not Lose Entrepreneurs to Other Countries”
Earlier this month, Bragg called for reforms related to cryptocurrencies, saying that these reforms are necessary so that businesses do not leave the country to go to more pro-crypto-pro-crypto areas.
Speaking at the APAC Blockchain conference, Bragg also noted that some crypto businesses are leaving Australia.
Such a trend could hurt Australia’s economy, Bragg said. The senator also stated that local entrepreneurs should not be “suffocated” with overly strict crypto regulations.
According to surveys, one in four Australians has encountered cryptoassets. This highlights the need for a new regulatory framework.
*Not investment advice.