Crypto Laws Loom for Australia as Government Seeks Market Views

Australia’s government is asking businesses and individuals for feedback on its plan to overhaul licensing and custody arrangements for digital assets.

The proposals include requirements such as breach reporting obligations, compliance with anti-money laundering laws and a strategy on how to classify crypto assets, according to a government paper released Monday.

The regime is being developed so consumers can trust the exchanges they use to trade crypto, Jane Hume, minister for the digital economy, said in the text of a speech Monday. The government wants feedback on the regulation ahead of its finalization later this year, she said.

“Government can’t guarantee your crypto any more than it can guarantee a painting or a share in a company, and nor should it,” she said. “But we can make sure Australian exchanges, custodians and brokers — Australian players in the crypto ecosystem — work within a regulatory framework that is better, safer and more secure.”

It is noteworthy to mention that Australia aims at being a key player in the Web3 space and aims at incentivising innovation in the sector. Speculations are being made that the new suggested reforms would be pro crypto. Crypto taxation would also be eased in Australia to promote the country’s position as a crypto friendly nation.

It’s worth noting that as the Web3 wave has transformed finance and people are finding new ways to profit from crypto assets, governments across the world are taking two approaches to these new developments.

On one hand, some countries are lowering taxation on crypto asset gains. South Korea’s newly elected President campaigned on a vow to drastically increase the tax threshold on crypto assets. Thailand’s cryptocurrency taxation policy has also recently been relaxed. Dubai has also introduced regulations to bolster the city’s stance in the Web3 revolution.

On the other hand, some countries a severely taxing crypto gains and imposing strict regulations on the industry. India recently slapped a 30 per cent tax and 1 per cent TDS on crypto gains. China has also cracked down on the crypto industry by outrightly banning private mining of cryptocurrencies. Morroco, Oman, Algeria, etc. are countries with strict regulations on cryptocurrencies.