Australia is one of the most-friendly nations when it comes to cryptocurrency. Australia’s Prime minister (Anthony Albanese) is treating crypto regulations as one of the top priorities, but still, he and his cabinet did not even give complete clear statements on how they will approach the space in the unregulated cryptocurrency.
Keeping in view the fall in the cryptocurrency market Profit Edge, the increased regulation of the cryptocurrency sector looks inevitable. With almost more than a million Australian transacting in crypto in the past year, people from Australia are making crypto profits with the help of online platforms such as Bitcoin Profit. The Australian Government seems ready to take the hard steps for the retail investors.
Bragg’s Report On Crypto Regulation In Australia: 12 Key Recommendations
Senator Andrew Bragg proposed the Digital Services Act at the Australian Blockchain Week Conference in March 2022, a legislative package that incorporates the report’s recommendations into legislation.
As per that report, there are 12 key recommendations on issues. But in May, unfortunately, Bragg’s party lost its parliament position and had defeated by the Labor party in the federal election. After that, the future of cryptocurrency regulation is still completely uncertain. Below highlighted are the 12 key recommendations of Bragg’s report:
- The committee recommends that the Government of Australia create a market licensing regime for Digital Currency Exchange, with auditing, capital adequacy, and A person who can take the responsibility to test under the Treasury portfolio.
- The second recommendation suggests that the Government of Australia needs to create a surveillance system for digital assets with minimum norms under the Treasury portfolio.
- As per the third recommendation, the committee suggests that the Australian Government should conduct a token mapping exercise to gravitate the best way to mark out different types of virtual asset tokens with the treasury and along with information from other related regulators and experts.
- In the fourth recommendation, the committee suggests that the Australian Government create a new decentralized, self-governing, organizational company structure.
- The fifth recommendations committee recommends that AL/CT(Anti-money laundering and counter-terrorism) funding regulations should be clarified to make sure they are a complete fit for their intentions, do not weak innovation, and give attention to the Financial Action Task Force’s travel Rule’.
- In the sixth recommendation, the committee suggests that the CGT(the Capital Gain s Tax) system should be modified so that the digital transactions related to assets only create a CGT event at the moment they genuinely result in a definable capital profit or loss.
- In the seventh recommendation, here the committee suggests that The Government of Australia changes the legislation regarding digital asset mining. For example. In Australia, if a company tax discount is 10% and if they can source the regenerative form of energies for these activities.
- In the eighth recommendation, the committee recommends that the treasury start a policy review system of the vitality of the Central Bank of Digital Currency in Australia.
9. The committee suggests to the Government of Australia, With the support of the Council of Financial Regulators, tomodify the petition from the ACCC inquiry to establish a scheme to fulfill the supply of international currency conversion services in Australia, and it should be complete until June 2022
- The committee recommends that to gain certainty and limpidity around the de-banking system, the Government of Australia needs to develop a clear procedure for the industries and businesses connected to de-banking.
- In the recommendation, the committee suggests that after reviewing Mr. Scott Farrel’s Payment system, they suggest developing a new Payment platform by the Reserve Bank Of Australia to decrease the support of payments business on most of the banks for the law of banking services.
- In the last recommendation, the committee suggests that the Government of Australia set up a global markets Incentive to substitute the offshore banking unit system by the end of 2022
After the result of federal election results, nobody knows what the Labor party’s policies would be regarding cryptocurrency regulations. The investors only guess which kind of policies will come to the surface under the rule of the Labor Party.