Amid the tension between Russia and Ukraine, several countries are taking steps to control the usage of cryptocurrencies within their jurisdiction. Australia has plans to be part of the growing list of nations aiming to control the cryptocurrency industry, with the authorities unveiling plans for a major revamp of digital payment improvements that include digital currencies.
Australia’s Laws Unfriendly For Cryptocurrencies
According to News Australia, the proposed legislation would focus primarily on crypto taxes, protection of investor’s rights, and supervision of exchange platforms. As stated by the nation’s Minister of Finance, Jane Hume, Australia’s government wants to guarantee that all cryptocurrency users operate inside a regulated environment as digital assets grow.
“The state cannot safeguard your cryptocurrency, in the same way it cannot protect the shares in an organization. However, we can ensure that Australian custodians, exchanges, and brokers operate under a stronger, reliable, secure and more friendly regulatory environment,” she added.
The country’s desire to regulate cryptocurrency became known in 2021, when Josh Frydenberg, the Treasurer for Australia, stated that the country would be announcing new regulations.
Following the intended rules, the government plans to release three important papers to reform the forms of payment in the financial industry. One paper seeks to collect data from key investors in the industry on how to license crypto-assets in addition to custody.
Furthermore, another of the Treasury’s proposals was to mandate cryptocurrency exchanges to keep the funds of Australian clients locally.
In addition, the memo will expose the results of two inspections into the cryptocurrency space and the terms of the contract. The probe is being conducted by the financial and competition authorities of Australia.
Lowering The Tax Burden
In terms of taxation, the nation’s Board of Taxation is anticipated to provide the government with a detailed report on the suitable legislative framework for digital currencies. Surprisingly, the state needs the taxation board to reduce the tax placed on cryptos while making suggestions for the cryptocurrency business.
Andrew Bragg, a Senator, has been in the frontline of the country’s parliamentarians pushing for cryptocurrency legislation. Also, the state is poised to accept some of Senator Bragg’s suggestions, which determined in a parliamentary report that Australia’s present legislation was unfit for cryptocurrency.
The research also urged the Australian state government to undertake a policy evaluation of introducing a digital currency in the country.
Bragg recently urged the state to consider recruiting specialists to design crypto law under a specialized agency. Aside from the revisions, the nation’s Treasury is developing a cryptocurrency exchange license and requirements for local custody. The results are likely to be made public in May.
Aside from the lack of clarity in Australia’s crypto law, the nation has a track record of being a crypto-friendly nation for cryptocurrency and exchange firms.