new recommendations for cryptocurrency regulation

Australia wants to have cryptocurrency legislation

Legislating digital assets will have been one of the central themes of the year 2021. Among the countries that have taken an interest in the subject, there is Australia and a Senate committee has just published, after a year of work, its final report.

The Senate committee in question is titled Australia as a Technology and Financial Center, demonstrating the goal of making the country a major financial and technological center. Among the aims of the report, we find the desire to provide a clear framework for local players in the digital asset sector.

The report in question is in fact the third and is considered the final report. It thus gives the conclusions of the committee. After identifying the problems encountered by players in the cryptocurrency and blockchain sphere, the document offers 12 recommendations.

These are aimed at solving the problems related to the lack of clear legislation on digital assets and blockchain in the country. The committee wishes in particular to take an example from what it considers to be the leading countries in this area, explicitly citing Singapore and the United Kingdom.

👉 Follow all the news related to the regulation of cryptocurrencies

Various recommendations for players in the cryptocurrency sector

Among the 12 recommendations, there are elements found elsewhere in the world, such as the creation of an Australian-style PSAN status, the characterization and definition of each type of token (governance token, security token , etc.) or the application of the rules relating to the fight against money laundering and the financing of terrorism (LCB-FT).

More surprisingly, the Senate committee proposes that the Australian government create a new structure similar to a decentralized autonomous organization (DAO).

On the tax side, the regime should be simplified so that capital gains tax only applies when a transaction results in a “clearly definable” capital gain or loss. A very interesting proposal would be to grant a 10% reduction to minors using their own renewable energy to carry out their activity.

Another recommendation that is not without interest would be to support companies in the sector that are unable to open a (de-banked) bank account. A problem which is unfortunately well known in France.

There is also the central bank digital currency (MNBC) project that Australia is currently pursuing with other countries. The committee questions its viability and the reduction of dependence on the private banking sector.

👉 To read – Australia, Malaysia, Singapore and South Africa are testing a common MNBC system

These recommendations must be transposed into a law to be applicable

The recommendations were tabled by the Senate committee and will now be submitted to the Australian Senate for approval.

They will be debated and will result in a bill to be voted on by Australia’s two legislative chambers, the lower house and the upper house. Cryptoast will keep you posted as the bill goes into law.

Australia is not the first country to call for clearer digital asset legislation. Lately, it has been South Africa that has called for progressive regulation of the sector. Other countries and institutions are leading the way with regard to MNBCs, including the European Central Bank, as well as France and Switzerland for the Jura project.

As Bitcoin (BTC) and other cryptocurrencies break their records, it’s a safe bet that crypto-asset regulations will remain relevant for many months to come.

👉 To read – France and Switzerland experiment with digital currencies for cross-border payments

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About the author: Benjamin Allouch

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Formerly a lawyer specializing in personal data and digital law, I quickly became interested in Bitcoin, blockchain technology and their legal implications. I am now an independent consultant and writer in the field of cryptocurrencies and blockchain.
All articles by Benjamin Allouch.

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