The committee hopes its recommendations will place the country on par with “leading jurisdictions” including Singapore and the U.K.

An Australian Senate Select Committee has submitted its final report on a year-long review of the country’s approach to crypto and blockchain regulation, seeking to guide, for the first time, a clear framework for the domestic digital assets sector.

The committee on “Australia as a Technology and Financial Centre,” which submitted its initial report in November 2020 and a second in April this year, tabled its third and final report Tuesday. The document outlines problems identified by leading industry participants and includes 12 recommendations for addressing issues as they relate to the lack of crypto and blockchain regulations in the country.

Cryptocurrency and blockchain technology regulation in Australia have often appeared fragmented and haphazard, attempting to apply decades-old laws to the nascent tech.

Taxation of cryptocurrencies for example, while considered capital gains, “unavoidably complicates” the establishment of crypto projects when compared to competing jurisdictions like Singapore that have “favorable income tax laws and do not have CGT,” the committee heard from one witness.

Liberal Party Sen. Andrew Bragg, who chairs the committee and is an outspoken supporter of digital asset innovation and regulation, said Australia would be competitive with Singapore, the U.K., and the U.S. in its approach to crypto and blockchain technology.

“Australia can be a leader in digital assets,” said Bragg. “This means Australians can access new choices and lower prices. It means Australians can have more control of their financial destiny rather than being dependent on endless intermediation.”

Recommendations but not yet law

Recommendations range from the implementation of a licensing regime for crypto exchanges to establishing a custody or depository regime for digital assets with minimum standards under the Treasury portfolio.

The committee also recommends that the Australian government establish a new Decentralized Autonomous Organisation (DAO) company structure.

“AML/CTF regulations and Financial Action Task Force guidelines need to strike a balance between appropriately managing risks, without implementing the travel rule in a way that undermines the operation of legitimate digital asset businesses,” the committee said in its report in relation to DAOs.

The issue of debanking, currently facing local crypto businesses by large banks, was also reviewed and said it understood the difficulty individuals and businesses face by taking their issue public, which, as the committee heard last month, places them on a blacklist against other banks.

Last month, the committee heard several complaints of large financial institutions, including some of the country’s biggest banks, denying or terminating services to local cryptocurrency and remittance businesses.

The committee heard little to no reason had been given for the “debanking” and that banks were being “anti-competitive” because they “didn’t like that there was this competition coming through that bitcoin and other cryptocurrencies posed.”

The committee recommends that the Treasury lead a “policy review” of the viability of a retail Central Bank Digital Currency in the country, in order to curb reliance on the private banking sector.

Having been tabled by the committee, the recommendations are now subject to action in the Senate, where they will be debated further until such time when the debates produce a bill to be voted on in both the lower and upper houses.


All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by CoinDesk constitutes an investment recommendation, nor should any data or Content published by CoinDesk be relied upon for any investment activities. CoinDesk strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin is showing rising correlation with the S&P 500

Bitcoin is showing rising correlation with the S&P 500

Bitcoin and the crypto market have been in an uptrend since Wednesday following the Federal Reserve's decision to cut interest rates by 50 basis points. Bitcoin is up nearly 3% in the past 24 hours, rising briefly above the $63,000 level for the first time in three weeks.

More Bitcoin News
Ethereum rallies over 6% following decision to split Pectra upgrade into two phases

Ethereum rallies over 6% following decision to split Pectra upgrade into two phases

In its Consensus Layer Call on Thursday, Ethereum developers decided to split the upcoming Pectra upgrade into two batches. The decision follows concerns about potential risks in shipping the previously approved series of Ethereum improvement proposals.

More Ethereum News
Consensys case against SEC over Ethereum dismissed by Texas court

Consensys case against SEC over Ethereum dismissed by Texas court

Consensys announced dismissal of a case it filed against the SEC in April about the agency's alleged actions against Ethereum. Judge Reed O'Connor of the Northern District of Texas dismissed the case on Thursday. Consensys claims that the court failed to examine the "merits" of its claim against the SEC.

More Cryptocurrencies News
XRP eyes gains as Ripple gears up for stablecoin launch, Grayscale XRP Trust notes rising NAV

XRP eyes gains as Ripple gears up for stablecoin launch, Grayscale XRP Trust notes rising NAV

Ripple (XRP) gained 2.3% since the start of the week. The altcoin’s gains are likely powered by key market movers that include Ripple USD stablecoin, Grayscale XRP Trust performance and the demand for the altcoin among institutional investors. 

More Ripple News
Bitcoin: On the road to $60,000

Bitcoin: On the road to $60,000

Bitcoin price retested and bounced off from the daily support level of $56,000 this week. US spot Bitcoin ETFs posted $140.7 million in inflows until Thursday and on-chain data supports a bullish outlook.

Read full analysis
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

BTC

ETH

XRP