Major changes proposed for growing number of cryptocurrency traders in Australia, including need for licensing and special tax rules
- Government proposes series of reforms to change crypto regulations
- Changes include tax system, licensing, regulation of digital banks and brokers
- Senator Andrew Bragg says Australia could be a ‘crypto hub’ under changes
Cryptocurrency regulations in Australia could be completely overhauled as part of a series of reforms proposed by the government.
It is estimated that over 800,000 Australians have been involved in cryptocurrency trading over the past three years, with that figure increasing by 63% in the past year.
The government now wants to design a “framework” for Australians and businesses operating in the market.
Cryptocurrency regulations in Australia could be completely overhauled as part of a series of reforms proposed by the government
The Treasury released a consultation paper on Monday containing several proposed changes to the way the currency works in Australia.
They include a taxation system for cryptocurrency, licensing for vendors to protect investors, methods of regulating digital banks, crypto exchanges, and brokers.
Treasurer Josh Frydenberg said introducing strict tax practices for cryptocurrency transactions was crucial.
“Cryptocurrencies and assets are a global phenomenon and as more Australians invest in these new asset classes and embrace the new technologies that underpin them, it is essential that we have a strong and competitive tax and regulatory regime,” he said.
“Tax certainty for investors and those carrying out transactions will also be vital.”
The government has launched a review by the Board of Taxation of the appropriate tax parameters for these assets.
The Treasury published a consultation document on Monday containing several proposed changes. They include a taxation system for cryptocurrency, licensing for vendors to protect investors, methods of regulating digital banks, crypto exchanges, and brokers. Pictured: image of a crypto trader
Treasurer Josh Frydenberg (pictured) said introducing strict tax practices for cryptocurrency transactions was crucial
Another of the proposed rules is that providers obtain a specialized license to operate in order to protect investors.
The crypto license would be separate from the Australian financial services license.
New South Wales Senator Andrew Bragg, who has led calls for changes to cryptocurrency regulations, told the Blockchain Week conference in Sydney that Australia has the potential to be a “global cryptocurrency hub”.
“This is a huge down payment from the Treasurer on Australia’s digital future,” he said.
“Australia is now a global leader in cryptocurrency and we are innovating.”
Bragg spoke at the conference on Monday alongside Financial Services Minister Jane Hume and many other cryptocurrency business owners and CEOs about the changes and the market in Australia.
NSW Senator Andrew Bragg (pictured), who has led calls for cryptocurrency regulatory changes, told the Blockchain Week conference in Sydney that Australia has the potential to be a “global hub of crypto-currencies”.
Hume said that even if the proposed changes were implemented, the government would not be able to “guarantee [investors] crypto nor can it guarantee a board or a stake in a company”.
She then added: “But we can ensure that Australia’s exchanges, custodians and brokers – Australia’s players in the crypto ecosystem – operate within a better, safer and more secure regulatory framework.”
The Treasury Department is now asking for a review of the proposed regulatory changes.