A fintech-focused Senate committee has recommended a complete overhaul of Australia’s regulatory process for the digital currency industry. In a new report, the committee recommended several changes that will impact digital currency exchanges, decentralized finance (DeFi), decentralized autonomous organizations (DAOs), block reward miners, merchants and other parties. infant industry stakeholders.
The Senate Committee on Australia as a Technology and Financial Center recently presented its third and final report to Parliament. In the report, he proposes a series of measures intended to bring the digital currency industry under government tutelage, including welcoming block reward miners with tax breaks at a time when China is eradicating them.
The committee consulted with several digital currency industry stakeholders during the preparation of the report, seeking to strike a delicate balance between investor protection and the opportunity to innovate.
From the Bitcoin SV ecosystem, Elas Digital expressed its views on Bitcoin and Satoshi’s vision for global P2P e-cash in June. In a 14-page article, the Brendan Lee-led company described what Bitcoin is, the defeat of Satoshi’s original Bitcoin vision by the BTC Cartel, the capabilities of BSV, its use to underpin a ledger national in Tuvalu and more.
Now, the committee has finally released its long-awaited report. On exchanges, regulators have proposed a new market license that will take into account factors such as auditing and capital reserves. This license will aim to protect small players by making the requirements proportional to the size of the company.
For block reward miners, the report proposes a 10% corporate tax reduction if they use renewable energy. The tax cut contrasts with China’s hardline stance on miners and could prove to be an incentive that puts Australia on the map as a mining haven. With block reward mining coming under scrutiny for its carbon footprint, the rebate could also incentivize the use of green energy, which would be a welcome direction for the beleaguered industry.
The committee also recommended that the government establish a DAO corporate structure; amend the capital gains tax law to reflect the nature of digital currency volatility; and conduct a CBDC viability study.
Australia’s digital currency industry has welcomed the proposals, saying they could pave the way for explosive growth in the industry. CoinJar Exchange CEO Asher Tan said, “In our view, the AFTC report strikes a commendably optimistic tone that sees blockchain technology as the landmark innovation that it is, and that comes with opportunities and corresponding risks.
Watch: CoinGeek Panel Zurich, Tuvalu: A Country’s National Digital Ledger on BSV
New to Bitcoin? Discover CoinGeek bitcoin for beginners section, the ultimate resource guide to learn more about Bitcoin – as originally envisioned by Satoshi Nakamoto – and blockchain.