To be “competitive with Singapore, the United Kingdom, and the United States,” Australia has to implement new laws for digital asset miners, such as tax breaks and a licensing scheme for crypto exchanges, according to a Senate report.
The Senate’s Committee on Australia as a Technology and Financial Centre released a report on Wednesday that calls for further clarification on when banks can refuse to work with a corporate customer that is involved in bitcoin.
Due to the significant dangers, many of Australia’s leading financial institutions have avoided engaging with the cryptocurrency sector, despite its massive expansion in the last year.
The size of the whole Australian digital assets market, on the other hand, is commonly estimated. According to researcher finder.com.au, a sixth of Australians owned cryptocurrency worth A$8 billion ($6 billion) in 2021, with bitcoin being the most popular.
Participants in the digital market applauded the findings but cautioned that rules needed to change more quickly. It has “strong recommendations,” but “the speed at which we’re attempting to really implement legislative reform, and the speed at which this technology is moving, are just poles apart,” according to digital asset investor and venture capitalist Mark Carnegie.
Caroline Bowler, CEO of bitcoin exchange BTC Markets, said the report surpassed expectations by including “pragmatic recommendations … to give a massive leg up in putting Australia on the global fintech map”.
