Australia’s government is reportedly planning to identify which cryptocurrencies are most widely used in the country and place them under a regulatory framework by the end of the year. The ruling Labour Party intends to determine the most popular cryptocurrencies in Australia and regulate them before the end of 2022.
Some Australian politicians have hinted towards a crypto regulatory plan for the past few years. Earlier in 2022, the Labor Party won the elections and its leader, Anthony Albanese became Australia’s new Prime Minister. Upon his appointment, he said one of his administration’s main goals is implementing regulations on the local cryptocurrency ecosystem.
Albanese’s administration will identify which digital assets are the most popular in Australia and decide upon their regulation according to a recent coverage by Bloomberg. Treasurer Jim Chalmers stated that this process, which is classified as “token mapping,” will occur before the end of the year.
Caroline Bowler – Chief Executive Officer of BTC Markets said that “token mapping” will have plentiful benefits, such as providing “greater clarity to crypto investors,” aiding companies in developing innovations and assisting watchdogs in shaping comprehensive rules.
The Labor government will also scrutinize the existing digital asset regulatory policies and work towards updating them. Additionally, it will check how different cryptocurrency firms, including custodians and exchanges, service their customers to provide maximum protection for investors. Notably, the former government under Prime Minister Scott Morrison intended to regulate the domestic digital asset industry, too. Their loss at the elections has now put the ball in the court of the Labour party.
Months ago, the Australian Taxation Office (ATO) said it will focus on people that record capital gains or losses from cryptocurrency and tax them. The ATO’s Assistant Commissioner – Tim Loh – said the entity knows that Australians have shown a great interest in cryptocurrency and digital assets lately.
A survey conducted last year revealed that 17% of Aussies have some cryptocurrency holdings, while Bitcoin (BTC), Ether (ETH), and Dogecoin (DOGE) are the most popular digital assets in the country. The ATO did not disclose the impending tax rate. However, it warned investors that once the rule was enforced, anybody who doesn’t abide by it and accurately report their capital gains on crypto transactions would face stiff penalties.
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