Crypto traders welcome Senate report: government urged to pass reforms
Australia’s crypto industry has welcomed a Senate report into digital currencies but has called for quick legislative action, as bitcoin hits record highs.
Australia’s crypto industry has warmly welcomed the Senate’s report into cryptocurrencies and called for its recommendations to be implemented as quickly as possible so that the nation can become a crypto powerhouse and capitalise on the rampant popularity of bitcoin.
The report, released on Thursday night by Liberal senator Andrew Bragg, called for Australia’s tax rules to be overhauled to be more friendly for the likes of bitcoin.
It says businesses that mine cryptocurrency in Australia should be offered a company tax discount of 10 per cent if they source their own renewable energy to do so.
Bitcoin reached record highs on Thursday, trading as high as $US66,974.77 ($89,460.72).
Australian crypto veteran Leigh Travers, the chief executive of digital currency exchange Binance Australia, said the Senate’s report was comprehensive with consideration given to central banks, traditional financial institutions, the crypto industry, government and consumers.
“The major issue the industry has been facing is access to services such as banking, and an opportunity to conduct their business with the best standards and compliance in mind, which the Senate is now recommending,’’ Mr Travers said.
“Larger players, like Binance Australia, have the financial capabilities, technical skills, and the appropriate level of experience to manage a digital asset exchange that has lower fees and better liquidity for users.
“This new regimen will allow the leading players to showcase these capabilities.
“By introducing a regimen for custody, Australia is seeking to present a market for a crypto industry that has a similar capitalisation to rival the entirety of Australia’s market for custodial service providers.”
He added that previously, capital gains tax had often become onerous and been a big impediment to adoption of crypto more broadly.
“This regimen seeks to ease some of the burden, which will be welcomed,” he said.
Venture capitalist Mark Carnegie said it was a ‘‘great report’’ and urged politicians to act quickly to implement its recommendations.
“If we get legislation implemented and taxation certainty by the end of FY 2021, I will host a party at Bondi Icebergs for everyone!” he said.
“The speed at which we’re trying to actually implement regulatory change, and the speed with which this technology is changing, are just poles apart.
“Based on the market licensing recommendations, we will now prepare for a digital currency exchange licence, if ASIC will engage.”
Professor Chris Berg, the co-founder of the Blockchain Innovation Hub at RMIT University, said parliament should adopt the recommendations as quickly as possible.
“We have an opportunity to take a global leadership position,” he said.
“It is good to see our recommendations to change how cryptocurrency is taxed and how blockchain-based decentralised autonomous organisations (DAOs) are regulated being taken up by the Australian Senate.”
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