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Senator Andrew Bragg of Australia has proposed a regulatory framework for the cryptocurrency business.
The cryptocurrency business is fast evolving, making it tough for regulators to keep up. But Braggs feels authorities must take these changes seriously. He notably cited DAOs, which have recently gained in popularity.
Guidelines for the crypto business
Senator Bragg is calling for legislation to protect cryptocurrency users.
Senator Bragg remarked during the press conference that the new legislation aims to “protect [crypto] consumers from rogue operators.” Licensing, debunking, taxation, decentralized autonomous entities, and custody will all be reformed.
At the Australian blockchain week conference, which is presently online, he introduced the legislative proposal titled Digital Services Act (DSA). Almost every area of the crypto sector is covered in this detailed plan.
Such legislation, according to the senator, would provide guidelines for the crypto business and demonstrate Australia’s desire to play a larger role.
The proposed legislation’s broad scope implies that Australian stakeholders are not taking any chances.
With the current rules, he claims, DAOs pose “an existential threat to the tax base.” He is referring to Australia’s reliance on corporate income tax, despite the fact that DAOs are not taxed in the same way that conventional corporations are. This allows companies in the country to avoid paying taxes by forming DAOs instead.
What to expect from regulations
Not only does Bragg believe that crypto laws are necessary for the country. The country’s parliament is also contemplating this, and documents pertaining to the regulations are expected to be released soon. It also intends to have regulatory consultations with the crypto business.
The Treasury Department is also debating whether or not crypto exchanges should be required to keep their investments in Australia onshore. This is supposed to lessen the chances of exchanges disappearing with consumer funds and protect investors even more.
Given that the authorities have been working on these reforms for months, none of these new developments are surprising. Australian Treasurer Josh Frydenberg revealed proposals to revamp the country’s payment system in December. Last year, the Senate also requested a study on the fintech business.
The Council of Financial Regulators is also looking into the de-banking of cryptocurrency by the country’s biggest banks. Allowing major banks in the country to enable crypto transactions will have a big impact on the industry’s development.
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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.
