The Australian government is considering a bill that would make cryptocurrency legal currency in the country

On October 20, the Australian Senate Committee released a ground-breaking report calling for significant improvements to crypto legislation and licensing in the country. Will it be enough to transform Australia into an international blockchain haven and serve as a role model for other nations?

Entrepreneurs have long derided top-down government solutions to invention. Many blockchain firms are currently searching for more regulatory clarity as institutional money floods in and decentralized finance (DeFi) use cases and services flourish during the previous 18 months.

The Australian Senate Select Committee on FinTech and RegTech, led by Senator Andrew Bragg, was formed in 2019 to improve the regulatory environment for FinTechs and RegTechs in Australia. It would be dubbed the Bragg Inquiry right away and its major aim is cryptocurrency. Many people were shocked by Australia’s quick shift of focus.

According to the news item, the Australian government’s October 2021 Senate inquiry on digital assets has genuinely listened to the major concerns and aspirations of Australia’s rapidly growing cryptocurrency sector, with over 18% of the country’s population owning crypto. The inquiry published its final report after six months of hearings and submissions on the matter. This timely research has received a lot of industry backing.

Responding –

The report also suggested that Australia consider establishing a new corporate entity to be able to register decentralized autonomous organizations (DAOs) in the country. The ideas provide an opportunity for Australia to attract jobs, investment, and innovation while retaining talent.

Given Bragg’s status as a “Crypto Bro,” it’s not particularly surprising that he is making his mark in the cryptocurrency space. He took part in a July “Ask Me Anything” session on Reddit, where he met with crypto industry leaders, and another in September, during which he stated: “I am very enthusiastic about the democratic mandate of crypto — I believe it has established an asset class that anybody may participate in.”

Realizing that the DAO may be a great method to fund initiatives and projects, he has taken steps in his third year as a member of Parliament to explore how it might work for Australia. He understands the region well, as seen by his final report, which urges Australia to create DAOs as a new legal corporate vehicle. The fact that an acknowledgment is attempting not to subsume these new technologies into established legal standards runs counter to Australia’s common law legal system, which is based on precedent and legislation.

So, has cryptocurrency gotten so popular that the authorities can no longer ignore it? The committee, which includes six prominent political party members and an independent senator and is not simply Bragg, appears to be receptive to new ideas and genuinely dedicated to Australia’s status as a crypto innovation center.

The study’s conclusion is that Australia may establish a favorable regulatory environment for cutting-edge concepts like DAOs and crypto custodial services, and they could be provided there. Is this a model for less crypto-friendly countries to imitate? After all, Australia has long been notorious for its dangerous wildlife and, perhaps even more so, strict legislation.

With its choice, Australia is attempting to position itself as a jurisdiction with favorable legislation in order to attract additional investment. “Jurisdictions that provide competitive policy for decentralized technology will attract talent and investment in this field,” said Kelsie Nabben, a Blockchain Australia board member and Cointelegraph contributor.

De-banking of crypto exchanges stops –

The committee first suggested a new market licensing system for cryptocurrency exchanges, as Australian regulators and the Senate Inquiry have long accused Australian banks of anti-competitive de-banking of remittance payments to crypto companies or “de-banking,” despite being regulated by AUSTRAC.

The report also called for the creation of a “customized” custody or deposit system for cryptocurrencies. Australian authorities would have custody of crypto assets, reducing investor risk and encouraging custodial firms to operate in Australia.

Australia is set to become the new capital for trading in cryptocurrency, and it will be interesting to see how this change affects both the country’s economy and its status as a global financial hub. Given that Australian securities laws were designed with an eye toward protecting investors from fraud, some people are wondering if these regulations might unintentionally stymie innovation in blockchain technology development; however, we’ll have to wait and see what happens.

The Crypto tax Calculator Australia is an easy to use, fast and reliable application when it comes to calculating the taxes owed on cryptocurrency transactions. It can generate a report in seconds, making it a handy tool for individuals who trade with crypto or accountants who have clients of the sorts.