Australian Senator from New South Wales Andrew Bragg has said that strong regulations "would add credibility and validity" to the country's emerging digital asset sector.
Speaking to local publication Finder on November 2, the chairman of the Senate Committee on Australia as a Technology and Finance Center, commented that the country's crypto sector has shown its willingness to adopt greater regulatory oversight in a bid to achieve legitimacy. general.
"To my surprise, I have never seen an industry so keen on regulation," Senator Bragg said.
"Almost everyone I have spoken to in this industry understood that regulation would bring credibility and validity to this sector."
Bragg added that he expects new regulations overseeing Australia's crypto industry to be introduced in the next 12 months.
Bragg's comments come after his Senate committee published his'Crypto report' last month.
The report made 12 recommendations aimed at addressing key issues pertinent to the cryptocurrency sector, including a tax rebate for crypto miners using renewable energy, new licenses for cryptocurrency exchanges, a capital gains tax overhaul in decentralized finance (DeFi), and new laws to govern decentralized autonomous organizations (DAO)),
The document also acknowledged that the current lack of legislative clarity regarding digital assets "is creating uncertainty for project developers, companies, investors and consumers."
According to Bragg, the recommendations will allow Australia to compete with leading jurisdictions for the blockchain and crypto industries, including Singapore, the United States and the United Kingdom.
Surveys show that around 25% of Australians have owned cryptocurrencies now or previously, making Australia one of the largest crypto adopters per capita.
The Australian Tax Office (ATO) estimates that there are over 600,000 taxpayers who have invested in digital assets in recent years.
Related: Average Australian crypto portfolio grew 258% in fiscal 20-21, survey reveals
Swyftx, a Brisbane-based cryptocurrency broker with more than 100 employees in Australia, called on the government to facilitate a growing demand for access to the digital asset industry.
"Bringing digital assets within a sensible and personalized regulatory perimeter is a much better solution than forcing consumers to operate outside of it with unregulated foreign providers," Swyftx told the committee.
Blockchain Australia also commented on the need for Australia to enact proper regulatory reform to keep up with other jurisdictions, according to the report.
"Australia is lagging behind international jurisdictions in developing a fit-for-purpose cryptoasset framework," the industry association commented.
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