Australia, a crypto-friendly country with the highly rated crypto exchange CoinSpot, has joined the list of countries that plan to regulate the cryptocurrency industry. The government has announced plans to overhaul payment systems that will also target digital currencies.
Crypto Regulations’ Impacts On Investors
According to News Australia, most of the planned regulations will deal with crypto taxes, investor protection, and the regulation of digital banks and exchanges.
Jane Hume, the country’s minister for Financial Services, says that the government wants to make sure that all crypto players act in a regulatory ecosystem when people are adopting different types of assets.
“The government can’t guarantee your crypto any more than it can guarantee a painting or a share in a company, and nor should it.”, said she. The government can only make sure that all businesses on the Australian stock exchange, the custodians and brokers, work within a better, safer, and more secure regulatory framework.
Earlier in 2021, Treasurer Josh Frydenberg said that the state was planning to announce new laws, and afterwards came Australia’s plan to regulate digital assets.
Alongside the planned regulations, the government plans to release three important documents to accommodate the payment sector reform. One document aims to gather opinions from players on how to license digital assets together with the custody.
It’s important to note that one of the Treasury’s suggestions was to make crypto exchanges keep the assets of Australian investors onshore.
In addition, the document will also show the results of two investigations into the crypto sector, and the terms of reference. The investigation is carried out by Australia’s competition and finance bodies.
Cutting Down On The Tax Burden
On taxes, the Board of Taxation (BoT) is expected to give the government a detailed report on how to deal with digital assets in the country. The government wants BoT to cut down on taxes while providing recommendations to the crypto industry.
Legislators in the country have been at the front of the push for crypto regulations, led by Senator Andrew Bragg. Among other things, the government is expected to consider some of the recommendations made by Senator Bragg, who found that Australia’s current regulations were not fit for purpose.
According to the report, the Australian government should also look into the viability of a retail Central Bank Digital Currency (CBDC).
Recently, Bragg has suggested hiring experts to aid the government in crafting crypto regulations in a separate unit.
In addition to the changes, the Treasury is working on a crypto market licence and local custody rules. As soon as May, the findings are expected to be publicised.
Australia’s crypto laws aren’t clear, but the country has gradually built up its reputation as a crypto-friendly place where investors can work with digital currencies.
