- The proposed legislation is a consolidation of reforms laid out in a final report from a Senate Committee in December.
- The Australian government has announced its Digital Services Act, which seeks to regulate the nascent cryptocurrency industry.
Australia is moving forward with its plans to regulate digital assets and is seeking industry feedback on measures that focus on custody, DAOs, taxation, licensing and industry de-banking issues through the Banking Act. Government Digital Services.
Request the consolidation of the reforms established in a final report of a Senate Committee last year, Australian Liberal Party Senator Andrew Bragg said the Digital Services Act would provide greater regulatory oversight and deter companies from exploring their options abroad.
"Doing this would make Australia one of the only jurisdictions to tackle this issue head-on, indicating that we fully appreciate the promise and potential of blockchain technology," the senator said during his keynote address at the annual Blockchain Week. country.
The Senate Select Committee on Australia as a Technology and Financial Hub, which presented its findings in a final report in December, received and reviewed a large number of submissions and consulted on a range of issues with industry experts, including certain cases of debanking of crypto companies.
As part of its efforts, the government said Sunday that it has published a consultation document asking the industry to comment before the end of the month on its proposed crypto asset licensing and custody measures. The document also addresses the first stage of a token mapping exercise that is expected to be completed by the end of this year.
โWe have been in active consultation with the federal government and agencies throughout this process and are very pleased to hear about a market license and custody requirement for Australia,โ said Caroline Bowler, CEO of Crypto Exchange BTC Markets. "This commitment pushes Australia into a leadership position within a global regulatory environment and levels the playing field internationally."
Crypto tax is also a major focus of the government's proposed legislative package that published Terms of Reference on Sunday that task the country's Board of Taxation with reviewing the nation's crypto tax landscape.
The board will consider the current tax climate in relation to digital assets, understand the characteristics of the nascent asset class, compare the existing framework with that of comparative jurisdictions, and consider whether any changes would be appropriate.
Its review, which is expected to be completed by Dec. 31, is being carried out on the basis that it "would not increase the overall tax burden" for investors, the government said.
Under the proposed tax reform, the Liberal Party also seeks to bring DAOs (decentralized autonomous organizations) under the fold of the Corporations Law.
โSince DAOs are recognized as partnerships, not companies, they are not subject to corporate tax,โ the senator said. โDAOs are an existential threat to the tax base. They must be recognized and regulated as a matter of urgencyโ.
The next federal election is expected to be called sometime before May 21 and will pit the current party against its rival, the Australian Labor Party.
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