New crypto regulations for Australia. What does this mean for traders?

The Australian government has recently announced new regulations for cryptocurrency trades in the country, and this news is creating a significant stir among investors. With more stringent standards and more restrictions on transactions, many are concerned that this could put a damper on their trading activities. So what does the new crypto regulations mean for traders in Australia? In this blog post, we’ll explore how these changes might affect your investments and trading, as well as what you need to do to stay compliant with local laws. Read on for all of the essential information you need to know about crypto regulation in Australia.

Leaked documents from the Treasury Department of Australia have unveiled that cryptocurrency regulation might take up to a year or more before it arrives.

Government documents have uncovered that Australia’s crypto legislation may be delayed past 2024, as the government intends to take a thorough approach when evaluating the industry. It appears they want to gather every detail before making any moves moving forward.

According to documents attained by The Australian Financial Review under the freedom of information laws, it appears that the government is planning on releasing consultation papers in Q2 2023 and will proceed with stakeholder roundtables focusing on crypto licensing and custody during Q3.

Since the Australian Labor government assumed power three months ago, industry members have anxiously anticipated their token mapping exercise. Submissions for this milestone initiative were accepted until March 3rd – now all that remains is to uncover what comes next!

Nonetheless, documents suggest that final submissions to the cabinet won’t be made until late this year, presumably delaying any decisions on crypto legislation into 2024 and beyond.

The department’s briefing has reportedly acknowledged that lengthy timeline is likely to be met with dissatisfaction from the cryptocurrency business sector and consumer groups alike.

“Treasury expects some stakeholders to be disappointed with the perceived delay in implementing a licensing regime,” according to a brief from Australian Treasurer Jim Chalmers, seen by AFR. 

“For example, consumer groups seeking immediate protections and businesses seeking regulatory legitimacy.”

The Treasury is of the opinion that following FTX’s downfall, there has been a drastic dip in demand for cryptocurrencies which may grant them an opportunity to establish regulations.

“Treasury considers these concerns are somewhat mitigated by the current market conditions resulting in less consumer demand for crypto assets; and the need to complete the token mapping exercise to provide clarity on how any new licensing framework would operate in practice.”

Meanwhile, the government has also revealed through the documents that it has created a dedicated “crypto policy unit” within the Treasury department.

Last November, during a gathering with the Treasury team, the crypto policy unit made known possible demands for cryptocurrency licenses such as “fit and proper person” assessments, capital requirement stipulations and responsibilities to report bad actors or any fraudulence within this industry. Moreover, the unit expressed its interest in enhancing consumer safeguard measures.

According to a survey from Swyftx, an Australian crypto exchange, last year saw 1 million Australians with plans to purchase cryptocurrency for the first time in the following 12 months. This number brought total cryptocurrency ownership within Australia up to over 5 million!

Cryptocurrency is becoming more and more mainstream, now that it is being regulated by governments. Crypto Tax Calculator Australia allows users to easily and accurately calculate their taxes on any bitcoin or cryptocurrency-related transactions. This calculator simplifies the process of filing your crypto-related tax returns, providing a user friendly interface with tools such as capital gains reports and automatic currency conversions, so you don’t have to worry about making costly errors in the future. Invest in a trusted calculator and use Crypto Tax Calculator Australia today – it will save you time and money!