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- The Australian Senate Committee released a breakthrough report on Oct. 20 advocating for a thorough revamp of the country’s crypto laws and licencing
- Senator Andrew Bragg chairs the first Australian Senate Select Committee on FinTech and RegTech, which was created in 2019 to improve the regulatory environment for fintechs and regtechs in Australia
- The paper concludes that Australia may pass legislation to encourage ambitious notions such as DAOs and that crypto custodial services can now be done in the country
The Australian Senate Committee released a breakthrough report on Oct. 20 advocating for a thorough revamp of the country’s crypto laws and licencing. Entrepreneurs have traditionally questioned top-down government approaches to innovation. Many crypto startups are crying for more regulatory certainty right now in crypto land, as institutional investment continues to come in and DeFi use cases and solutions have continued to develop over the last 18 months. Senator Andrew Bragg chairs the first Australian Senate Select Committee on FinTech and RegTech, created in 2019 to improve the regulatory environment for fintechs and regtechs in Australia.
It was swiftly dubbed the Bragg Inquiry, and it is currently mostly focused on cryptocurrency. Australia’s fast transition to investigating and proposing favourable policies for the crypto business has shocked many. Australia is not known for its regulatory success. Based on the report’s heavy quoting of stakeholders, the Australian government’s October 2021 Senate inquiry final report into digital assets appears to have attempted to truly listen to the vast concerns and aspirations of the thriving Australian crypto industry, with nearly 18 percent of the population owning crypto. After six months of hearings and submissions on the subject, the inquiry delivered its final findings. This timely study has gotten a lot of positive feedback from the industry.
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Proposals for tax reform and a proposed new corporate structure to register DAOs in Australia are among the notable recommendations. The recommendations provide a chance for Australia to attract employment, investment, and innovation while also retaining people. Given Bragg’s growing reputation as a Crypto Bro, the result is fairly unsurprising.
He met with crypto stakeholders at a July event on Reddit. In September, he held another, during which he declared that he is a big fan of crypto’s democratic mandate; He believes it has established an asset class that everybody can use. He appears to understand the area well since the final study recommends that Australia establish DAOs as a new legal corporate entity. An acknowledgement that attempts to avoid incorporating these new technologies into current legal frameworks is incompatible with Australia’s common law legal system based on precedent and legislation.
The issue here is regulatory arbitrage, Bragg said on Reddit, referring to progressive laws in Wyoming, the United States. They want to see innovation legitimised through a regulatory framework that isn’t constraining. Has crypto grown to the point where the government can no longer ignore it? The research implies that the committee, which has six members from major political parties as well as an independent senator, is open to new ideas and actually supports Australia’s role as a hub for crypto innovation, rather than simply Bragg.
The paper concludes that Australia may pass legislation to encourage ambitious notions such as DAOs and that crypto custodial services can now be done in the country. Is it a good model for nations who aren’t as crypto-friendly, after all, Australia has a long history of deadly animals and, at best, ingenious control. It might be claimed that Australia is attempting to promote itself as a destination with advantageous legislation in order to attract more business with this move. Jurisdictions with competitive policies for decentralised technology will attract talent and investment in this space, said Kelsie Nabben, a member of the Blockchain Australia board. Wyoming made DAOs a legal organisation a year ago, and the state is already well-known in crypto circles throughout the world.
The study was warmly received by business, but there are worries that few in government understand the industry well enough to debate and approve laws effectively. Chloe White, the CEO of Genesis Block, is well-known in crypto circles as the former ambassador for blockchain for the Australian government. She mentioned that in order to carry out the execution, the government would have to step up its efforts and that the Senate’s proposed measures represent a watershed moment. However, suppose the government does not work closely with business experts to have a better knowledge of digital assassination. In that case it will be difficult to fulfil the Senate’s ambitious timetable of 12 months for legislation.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
