Senate Report Says Australia Needs to Change Its Law to Support Cryptocurrencies

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The cryptocurrency representations Bitcoin, Ethereum, Dogecoin, Ripple and Litecoin are located on the PC motherboard in this figure taken on June 29, 2021. Reuters / Dado Ruvik / Illustration

21 October 2021

SYDNEY (Reuters) – Australia needs to introduce new rules for digital asset miners, such as tax cuts and crypto exchange licensing, to be “competitive with Singapore, the UK and the US”, a Senate report says.

A report released by the Australian Senate as a technology and financial hub on Wednesday also called for clarification of 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, despite its huge growth in the past year, due to its high risk.

Australia taxes digital asset transactions only if people receive “apparently fixed capital gains” and a safe haven for entities with a “decentralized autonomous corporate structure”, the report said in the tax system. needs to be modified to make the payment.

“This means Australians have more control over their financial destiny than relying on unlimited arbitration,” said Chairman Andrew Bragg.

“The commission recommends a comprehensive cryptographic framework for Australia to lead. We will compete with Singapore, the United Kingdom and the United States,” he said.

Australia is struggling to keep up with the growth of its digital asset economy, which includes crypto exchanges, blockchain-based security tokens and non-fungible tokens, or “NFTs”, which provide ownership of assets online.

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

However, estimates of the overall size of Australia’s digital asset market differ greatly. Bitcoin is the most popular, with one-sixth of Australians holding the cryptocurrency worth $8 billion ($6 billion) in 2021, according to explorer.com.au.

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

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

Carolyn Bowler, CEO of bitcoin exchange BTC Markets, expects the report to include “practical recommendations to give Australia a massive foothold on the global fintech map”. Said it was over.

($1 = 1.3293 Australian Dollar)

(Reporting by Byron Kaye; Edited by Himani Sarkar)

Senate Report Says Australia Needs to Change Its Law to Support Cryptocurrencies

Source Link Australia needs to change its law to support cryptocurrencies, Senate report says

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