[2021-10-24] A Crypto Friendly Future For Australia, Senators Propose New Regula

[Woodie]

A Crypto Friendly Future For Australia, Senators Propose New Regulations

The Australian senate committee made 12 proposals to modify the current license and regulations over crypto assets, as well as the laws of taxation. The lawmakers believe Australia could take the lead in the digital economy if the laws were amicable.

The Senate Committee on Australia as a Technology and Financial Center (ATFC) states that the current regulations need to be adapted. As it was stated by the chairman: “The market is asking for regulation, and we are responding while trying to avoid trampling on innovation.”

Last year, Australian tax agents aimed to contact “as many as 350,000 individuals who have traded in cryptocurrency in the last few years.” To make a warning over meeting their tax obligations, as it was reported in News.com.au

The Australian law currently considers cryptocurrencies as an asset, therefore its investors are bound to pay a capital gains tax and report to the ATO if the digital asset is held for more than a year or makes any financial gain.
Read more https://bitcoinist.com/a-crypto-friendly-future-for-autralia-senators-propose-new-regulations/https://bitcoinist.com/a-crypto-friendly-future-for-autralia-senators-propose-new-regulations/

[SFR10]

The Australian senate committee made 12 proposals to modify the current license and regulations over crypto assets, as well as the laws of taxation.

For those who might be interested in reading the 12 proposals/recommendations, you can refer to the following link: Conclusions and Recommendations

As it was stated by the chairman: “The market is asking for regulation, and we are responding while trying to avoid trampling on innovation.”

I like the sound of that, but I don't think they can realistically achieve it ^{[unfortunately]}.

• Despite what I said earlier, I really liked the seventh proposal:
  
  

  • Recommendation 7
    6.56The committee recommends that the Australian Government amend relevant legislation so that businesses undertaking digital asset 'mining' and related activities in Australia receive a company tax discount of 10 per cent if they source their own renewable energy for these activities.

Read more https://bitcoinist.com/a-crypto-friendly-future-for-autralia-senators-propose-new-regulations/https://bitcoinist.com/a-crypto-friendly-future-for-autralia-senators-propose-new-regulations/

You've repeated that link twice ^{[this is the "correct" link]}.

[NeuroticFish]

Conclusions and Recommendations

Great link!

I'm pleasantly surprised the those making this paper actually have quite a good knowledge on the matter (did their homework properly).

Because many digital asset transactions take place several steps away from a crypto-to-fiat-currency trade, it can be very difficult for taxpayers to correctly assess their CGT liabilities under the current tax law and ATO guidance for these transactions.

I'm not into DeFi, but I'm impressed:

The committee heard that one of the most considerable barriers to entry for DeFi products is the numerous taxable events that may arise when a crypto-asset token interacts with a DeFi protocol.

And the list of recommendations - from a quick read - look pretty good.



Will Australia become the first country with proper regulation for crypto? Could be. I just hope they don't "break" this when they turn them in actual laws.