New crypto regulation & tax system in Australia coming

Australia is working to introduce its new crypto regulation framework to bring better protection for crypto investors and kick out the old flaws. 

Australia is a crypto-friendly country in the world but recent years showed that the government of Australia is highly aware of the revolution of the crypto industry. And also past 5-6 months reports claimed that Australia wants to be a leading crypto regulatory body in the world. 

According to reports, Australia will release its new kind of regulation system-based framework paper today but before the introduction, it will first go under consultation because the government will first see the controversial or unfair things/part of the new proposed regulatory framework. 

Reportedly the new regulation framework will include almost every part of the crypto Industry of Australia to provide a new framework, which will include the new tax rules on crypto Investors and also a new regulation system for crypto service providers/brokers. 

New Australia crypto regulation framework, One Paper, aimed to shift the crypto platforms (including services like brokers and exchanges) at the restrictive boundaries. For the same, Australia will prepare its license system to hold Australian investments onshore.

The reforms for the same will come into effect by the end of this year but here we have to keep in our mind that no exact date has been provided by the government yet and before the implementation of new rules it will remain in the consultation phase. 

Many reports noted that the latest regulation framework is based on the multiple & different proposals made by the  Australian senators in the last year. 

Crypto re-regulation is a need 

At present US, UAE, UK, Australia, South Korea, El Salvador-like countries have precise and systematic rules on crypto but from time to time crypto companies raise their voice against the unfair rules and systems of regulations. All these things are giving hints that proper regulation of the crypto industry is needed. 

When the crypto industry was in its initial phase, that time the majority of the Countries introduced their rough and tough rules on the crypto Industry but now surely these things needed to be taken into consideration. An example can be seen for the same in India, where the government is still not able to introduce its crypto regulation framework but imposed 30% tax on crypto income law, which is outside the income tax slab of the nation.

Another example can be seen in Russia, where the country introduced its crypto regulation framework on 1 January 2021 but is now planning to ban or regulate under the new framework.

Read also: India is working to impose 28% GST Tax system on crypto