Australian Senate report recommends crypto-friendly regulations

Australian Senate report recommends crypto-friendly regulations

Given the growing interest in cryptocurrencies worldwide, the Senate Committee on Australia as a technology and financial center has recommended that the country adopt favorable regulations for digital assets to promote the development of the industry.

Promoting crypto growth

The committee said in a Test report Reuters published today that the proposed laws should focus on, among other things, providing tax breaks for crypto trading and introducing a licensing regime for exchanges.

According to the paper's recommendations, the new regulations are intended to provide clarity on how to categorize different digital currencies in order to identify the rules relevant to them.

The proposed regulatory clarity will also guide banks' decisions as they consider de-banking cryptocurrency customers, as the indiscriminate closure of crypto investors' accounts has hindered the industry's growth.

In addition, the regulation should be supplemented with an effective crypto taxation rule that allows traders to pay taxes on trading in the asset class when they record a clearly definable capital gain.

With appropriate regulations on digital assets, Senator Andrew Bragg, the chairman of the committee, noted that Australian crypto traders will have more control over their financial fate instead of being endlessly dependent on unnecessary intermediaries.

Bragg added that the recommended comprehensive crypto framework will allow Australia to compete with the UK, Singapore and the US

Australian Crypto Regulator Lawyers

Earlier this year, Australia's Finance Minister Jane Hume called on the government to Allow new investors to get involved on cryptocurrencies by not introducing stricter regulations.

Hume said implementing a tighter regulatory framework could hamper the industry's growth, adding that the government needs to support citizens "to be sensible enough to judge for themselves whether to invest their hard-earned money in riskier investments."

Regardless of the risk associated with crypto investments, the to Australians lose $25 million to fraudsters In the first half of the year, Hume stated that the government should not stand in the way of investors seeking exposure to the asset class.

Increase in Australian crypto adoption

Australian cryptocurrency adoption in 2021 has been impressive. Popular researcher finder.com.au reported that one-sixth of Australians now own A$8 billion ($6 billion) worth of cryptocurrencies.

The increase comes as several institutional investors continue to show interest in digital currencies and just as many view the asset class, particularly Bitcoin (BTC), as a store of value.

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