- Cryptocurrency has been regulated since its approval in 2017 by the then Australian government and regulating authority
- Exchanges are required to have a license to form base in the country and anonymous digital coins do not have a place in any exchange
- Financial environment is poised to grow as more regulations protect the interests of retail and small investors
Cryptocurrency has been dealt in a different manner Down Under where extremes of acceptance or disapproval were not prevalent. The government introduced it in a very subtle manner with changes in regulations with each passing year. ICO and cryptocurrency trading regulations were updated in 2019 and previous year authorities stepped in and requested crypto exchanges to delist several coins. However, are these enough to sustain the future environment of digital assets?
Mild regulatory changes since acceptance in 2017
It’s been four years since the government approved cryptocurrency to be legal and used as a means of investing and trading. Subsequently, it was brought under the ambit of Section 5 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF 2006). It is also subject to Capital Gains Tax due to its similar characteristics as that of property.
Exchanges in Australia need to register with the Australian Transaction Reports and Analysis Centre (AUSTRAC) to keep a track and verify users, efficient management of records and comply with reporting regulations. Anonymous cryptocurrency were ordered to delist their coins from cryptocurrency exchanges in August 2020.
Regulations that govern mining activities
Regulatory bodies in Australia have taken note of the fictitious activities that are being carried out with cryptocurrency mining software that has largely affected the processing capacity and affected business resources. Thus stricter norms should be in place to increase cyber resilience and stop illicit activities. Policies with respect to mining activities should be tightened for effective control and vigilance.
A strong base formed with effective norms governing digital assets
In a generation where cryptocurrency has already been added as an asset class, authorities in Australia are taking their own time to create awareness and spread the knowledge it has regarding the global approval of Bitcoin by many governments. Proactive cryptocurrency regulation has been the norm and should be continued in any given scenario. The financial ecosystem in Australia will revolve around how AUSTRAC deals with cryptocurrencies like Bitcoin, Ether and Dogecoin among others.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.