With a tremendous surge in crypto and its underlying technology this year, different governments across the globe have started evaluating regulation frameworks for managing crypto. The latest development comes from Australia, where a Senate Select Committee has submitted its final report regarding crypto regulation.
The committee has shared its views regarding the country’s approach to crypto and blockchain regulation for a whole year. Therefore, the report seeks to guide a clear framework for the domestic digital assets sector for the first time.
Initially, the committee on “Australia as a Technology and Financial Centre” had submitted its first report in November 2020. Following that, it had submitted the second report in April this year. Finally, it had submitted its final report yesterday.
Moreover, the document has briefed some problems and included 12 recommendations for addressing them. Also, most of these issues stem from the lack of crypto and blockchain regulations in the country.
A major problem is since crypto technology is very recent compared to the decade-old laws drafted in most countries’ constitutions.
For example, the taxation of cryptocurrencies, while considered capital gains, “unavoidably complicates” the establishment of crypto projects. Moreover, there is a greater need to have favourable income tax laws that’ll help the country compete with other markets.
Liberal Party Sen. Andrew Bragg, an outspoken supporter of digital asset innovation and regulation, talked about this:
“Australia can be a leader in digital assets. This means Australians can access new choices and lower prices. It means Australians can have more control of their financial destiny rather than being dependent on endless intermediation.”