{"id":396981,"date":"2022-01-21T05:07:00","date_gmt":"2022-01-21T02:07:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/australias-plan-to-create-a-crypto-competitive-edge-in-12-steps\/"},"modified":"2022-01-21T05:07:00","modified_gmt":"2022-01-21T02:07:00","slug":"australias-plan-to-create-a-crypto-competitive-edge-in-12-steps","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/australias-plan-to-create-a-crypto-competitive-edge-in-12-steps\/","title":{"rendered":"# Australia\u2019s plan to create a crypto competitive edge in 12 steps"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2d0a1cba55d\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2d0a1cba55d\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/australias-plan-to-create-a-crypto-competitive-edge-in-12-steps\/#Four_key_recommendations\" >Four key recommendations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/australias-plan-to-create-a-crypto-competitive-edge-in-12-steps\/#Three_tough_issues\" >Three tough issues<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/australias-plan-to-create-a-crypto-competitive-edge-in-12-steps\/#Learnings_for_governments_around_the_world\" >Learnings for governments around the world<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Australia\u2019s plan to create a crypto competitive edge in 12 steps <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>In October 2021, the Senate Committee for Australia as a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">Technology<\/a> and Financial Centre released its much-awaited recommendations for how cryptocurrency should be regulated. The 168-page final report boils down to 12 recommendations aimed at <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/parlinfo.aph.gov.au\/parlInfo\/download\/committees\/reportsen\/024747\/toc_pdf\/Finalreport.pdf;fileType=application%2Fpdf\">striking<\/a> the right balance between creating legitimacy without stifling innovation.\u00a0<\/p>\n<p>This is a landmark report that demonstrates Australia\u2019s clear efforts to put itself at the forefront of crypto investment globally. The chair of the committee, Senator Andrew Bragg, believes that \u201cAustralia can be a leader in digital assets\u201d and is confident that it can particularly \u201cbe competitive with Singapore, the UK and the US.\u201d<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Four_key_recommendations\"><\/span>Four key recommendations<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>First, the introduction of a range of new crypto-specific licenses and regulations. For too long, regulators around the world have been trying to put square pegs (cryptocurrency) into round holes (traditional financial regulation). This <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roach underestimates the fundamental differences that exist as well as the potential that digital assets have to transform the world. This report acknowledges crypto\u2019s potential and calls for a range of bespoke cryptocurrency licenses in Australia. It recommends a specific market licensing regime for digital exchanges as well as a bespoke custody regime for digital assets. Details will still need to be fleshed out but if we get these frameworks right, then this will create the legitimacy that the sector needs to take off into the mainstream. <\/p>\n<p>Second, the introduction of a decentralized autonomous organization (DAO) entity type into Australian corporate law. This recommendation is a very big deal, as it shows that the Australian government is open to decentralized finance (DeFi) as well as crypto innovation. Wyoming is the only region I have heard of that has something like this in place, so this could put Australia on the front foot. If approved, DAOs could provide a unique utility that may bring the Australian economy a decade ahead into a decentralized future. However, this will also be the hardest thing for the Committee to get approved, as changes to the Corporations Act are infamously rare in Australia. If anyone can do it, it\u2019s Senator Bragg though.<\/p>\n<p>Third, improved tax rules for crypto-to-crypto transactions. Recent Finder research shows that over 17% of Australians own cryptocurrency \u2014 the third-highest rate of adoption in the world. However, this growing group has had to grapple with tax rules that are confusing at best. Historically, crypto-to-crypto transfers have been considered a capital gain by the Australian Tax Office. The new recommendation calls for tax only when there has been \u201ca clearly definable capital gain or loss.\u201d Again, the devil will be in the detail on this one but active Australian crypto users could be the real winners. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/78a8ec6e-cc4e-4b99-8b4d-32d51521eafe.png\"><\/figure>\n<p>Fourth, new tax incentives to encourage green crypto mining. The Committee recommends a 10% company tax discount for crypto mining businesses that use renewable energy. This looks like a smart move to support two high-growth Australian industries: renewable energy and cryptocurrency. This will be especially important as the Committee tries to get these recommendations signed off against a backdrop of COP26 and rising concerns about climate change.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Crypto staking rewards and their unfair taxation in the US<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Three_tough_issues\"><\/span>Three tough issues<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>Timelines for turning recommendations into law<\/strong><strong><em>.<\/em><\/strong><strong> <\/strong>Right now, these are all just recommendations, and are worth as much as the political will that exists to enact them. As with other countries, politics in Australia moves slowly and this will be no different. Senator Andrew Bragg is bullish that he can get all the recommendations passed in 12 months and I back him to get it done. His cause could also be supported by a growing view that crypto innovation could be a vote-winner with young Australians in a looming federal election, as nearly a third of Generation Z already <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.finder.com.au\/finder-cryptocurrency-report-2021\">own<\/a> cryptocurrency. <\/li>\n<\/ul>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/b66249f6-418c-4392-985e-79fa35a6a381.png\"><\/figure>\n<ul>\n<li><strong>Implications for crypto businesses during the pre-reform period<\/strong><em>.<\/em><strong> <\/strong>If it takes a year to introduce new laws then there are still questions about what crypto businesses can do in the meantime. Many submissions called for a \u201csafe harbor\u201d against regulation until rules had been finalized but this was not explicitly recommended by the Committee. However, the direction of <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/trip-and-travel\/\" data-internallinksmanager029f6b8e52c=\"10\" title=\"Trip &amp; Travel\" target=\"_blank\" rel=\"noopener\">travel<\/a> has been set and there is clear support for crypto innovation and an acknowledgment that new rules and licenses are needed. I would be surprised if we saw much in the way of regulatory action until then. <\/li>\n<\/ul>\n<ul>\n<li><strong>Specifics for the licensing and tax proposals.<\/strong><em> <\/em>Many of these recommendations were light on detail and it looks like the Australian Treasury will now lead on these matters. The industry will be very interested to know what the requirements for being a custodian or digital exchange will be, particularly when it comes to capital requirements. If there\u2019s too much regulatory burden, then businesses will move offshore. Likewise, consumers will need more clarity on what a \u201cclearly definable capital gain or loss\u201d is for tax purposes. In many ways, the work starts now. <\/li>\n<\/ul>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Crypto makes history in 2021: Five instances of governments embracing digital assets<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Learnings_for_governments_around_the_world\"><\/span>Learnings for governments around the world<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>The crypto industry is ready to talk policy. <\/strong>It\u2019s fair to say that this Select Committee was inundated with engagement from crypto businesses, academics, peak bodies and regulators. More than 100 written submissions contributed and there were three full days of public hearings. It\u2019s not often that an industry is asking for more regulation but that is what is happening here. The crypto industry around the world wants clarity and is ready to have a conversation about policy.<\/p>\n<p><strong>Broad reviews are more effective than siloed approaches. <\/strong>One key reason that this consultation had so much engagement was that it looked at the digital asset industry holistically rather than from one angle only. A problem we\u2019re seeing around the world is regulators interested in looking at crypto assets from their specific regulatory view, but broad innovation shouldn\u2019t be assessed through such a narrow lens. This consultation managed to look at the industry holistically while still getting into the specific issues. I welcome more reviews like it around the world.<\/p>\n<p><strong>Bespoke digital asset policy approaches will be needed. <\/strong>Digital assets have hit critical velocity and the revolution can no longer be ignored. Piecemeal changes to legacy financial services policy will not work. We need policymakers around the world to work together to create bespoke policies that are fit-for-purpose. Coinbase captures this well in pillar one of its Digital Asset Policy Proposal (DAPP). The DAPP calls for \u201ca new framework for how we regulate digital assets\u201d that \u201cwill ensure that innovation can occur in ways that are not hampered by the difficulty of transitioning from our legacy market structure.\u201d These recommendations in Australia are an attempt at doing exactly that which many can learn from.<\/p>\n<p>What is clear is that the world is changing. This Senate Committee in Australia should be applauded for taking a holistic approach and recommending bespoke policy instruments. It\u2019s time for policymakers around the world to follow suit and take a broad look at their approach to digital assets. <\/p>\n<p class=\"post-content__disclaimer\"><em>This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.<\/em><\/p>\n<p class=\"post-content__disclaimer\"><em>The views, thoughts and opinions expressed here are the author\u2019s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.<\/em><\/p>\n<div>\n<div style=\"background: rgb(239, 239, 239); border: 1px solid rgb(204, 204, 204); padding: 10px;\"><strong>Fred Schebesta<\/strong> is an Australian-born entrepreneur and early-stage investor, founder of global fintech Finder, now worth over half a billion dollars. Fred recently launched blockchain investment fund Hive Empire Capital and co-founded Balthazar, a DAO platform for NFT gaming. With 22 years of experience in building businesses, Fred just released a Number One Amazon Best Selling book, <em>Go Live! 10 Principles to Launch a Global Empire<\/em>.<\/div>\n<\/div>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/australia-s-plan-to-create-a-crypto-competitive-edge-in-12-steps\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Australia\u2019s plan to create a crypto competitive edge in 12 steps &#8221; In October 2021, the Senate Committee for Australia as a Technology and Financial Centre released its much-awaited recommendations for how cryptocurrency should be regulated. The 168-page final report boils down to 12 recommendations aimed at striking the right balance between creating legitimacy&#8230;<\/p>\n","protected":false},"author":1,"featured_media":396982,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDEvMjQ2MDBkYTgtZDUyYi00ZDFiLWFmZjAtYmUxNWExYWRlMjVkLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74894,74863,74355,20358,71511,70934],"class_list":["post-396981","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-blockchain","tag-cryptocurrencies","tag-adoption","tag-australia","tag-government","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/396981","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=396981"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/396981\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/396982"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=396981"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=396981"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=396981"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}