Australia needs to change its legislation to support cryptocurrencies, the Senate report said

Cryptocurrency Representations Bitcoin, Ethereum, Dogecoin, Ripple and Litecoin are located on the PC motherboard in this figure taken on June 29, 2021. REUTERS / Dado Ruvic / Illustration

October 21, 2021

Sydney (Reuters) -Australia needs to introduce new regulations for digital asset miners, such as tax cuts and crypto exchange licensing, to be “competitive with Singapore, the UK and the US,” Senate report Says.

A report issued by the Australian Senate as a technology and financial center on Wednesday also calls for clarification of the rules on when banks can refuse to do business with business customers involved in cryptocurrencies.

Many of Australia’s top financial institutions are not involved in the crypto sector 2021-09-09, despite its huge growth in the last year, due to its high risk.

Australia tax on transactions of digital assets only if people achieve “clearly definable capital gains” and rules to secure space for entities with a “decentralized autonomous corporate structure” The report added that the tax system needs to be modified to pay.

“This means that Australians have more control over their financial destiny rather than relying on infinite mediation,” said Chairman Andrew Bragg.

“The Commission recommends a comprehensive cryptographic framework for Australia’s leadership. We will compete with Singapore, the United Kingdom and the United States,” he added.

Australia is struggling to keep up with the growth of its digital asset economy, which covers crypto exchange, blockchain-based security tokens and non-fungible tokens, or “NFT”, which offers ownership of online properties.

The Australian Taxation Bureau said it has sent the prices of some cryptocurrencies to record levels, noting the “dramatic increase in transactions” since early 2020, when the blockade of COVID-19 caused a surge in online investment activity. The report states.

However, estimates of the overall size of Australia’s digital asset market are very different. Bitcoin is the most popular, with one-sixth of Australians owning A $ 8 billion ($ 6 billion) worth of cryptocurrencies in 2021, according to researcher

Digital market participants welcomed the report, but warned that the rules needed to be changed sooner.

“The speed at which regulatory changes are actually being implemented is completely different from the speed at which this technology is changing,” said Mark Carnegie, a venture capital investor interested in digital assets. ..

Caroline Bowler, CEO of Bitcoin Exchange BTC Markets, hopes the report will include “practical recommendations to give Australia a massive foothold in putting Australia on the global fintech map.” Said that it exceeded.

($ 1 = 1.3293 Australian dollars)

(Report by Byron Kaye; edited by Himani Sarkar)

Australia needs to change its legislation to support cryptocurrencies, the Senate report said

Source link Australia needs to change its legislation to support cryptocurrencies, the Senate report said

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