Australia has joined the list of nations attempting to regulate the cryptocurrency industry, with the government unveiling plans for a comprehensive revamp of payment system changes that would also target digital currencies.
According to the country’s minister for Financial Services, Jane Hume, the government intends to guarantee all crypto participants behave in a regulated environment despite rising usage of diverse assets.
“The government can’t guarantee your crypto any more than it can guarantee a painting or a part in a firm, and nor should it. But we can make sure Australian exchanges, custodians and brokers function under a regulated environment that is better, safer and more secure,” she added.
Australia’s desire to regulate crypto revealed in 2021 when Treasurer Josh Frydenberg suggested that the state had plans to unveil new regulations.
In accordance with the proposed laws, the government is due to disclose three crucial papers that attempt to regulate the payment industry. One paper tries to gather comments from important actors on licencing digital assets with the custody.
Notably, one of the proposals of the Treasury was to oblige crypto exchanges to store the assets of Australian investors onshore.
Furthermore, the paper will also disclose the findings of two investigations into the crypto industry that will include the terms of reference. The inquiry is by Australia’s competition and finance authorities.
Minimizing tax burden
On taxation, the Board of Taxation (BoT) is anticipated to give a complete report to the government on the proper regulatory framework for cryptocurrencies. Interestingly, the government wants BoT to lower the tax burden while making advice for the crypto industry.
The country’s MPs have been in the forefront pushing for crypto legislation headed by Senator Andrew Bragg. Notably, the government is anticipated to accept some of the suggestions of Senator Bragg, whose parliamentary investigation determined that Australia’s present legislation were not fit for purpose.
The study also called on the Australian government to undertake a policy evaluation of the feasibility of a retail Central Bank Digital Currency (CBDC) in Australia.
Recently, Bragg has called on the government to explore recruiting specialists to design crypto laws under a separate body.
Besides the measures, the Treasury is working on developing a crypto market licence and local custody requirements. The results are scheduled to be announced as early as May.
Besides Australia’s crypto laws lacking clarity, the nation has earned a reputation as a digital currency-friendly state housing various associated firms.