Australia has joined the growing list of countries considering cryptocurrency regulation, with the government ready to unveil plans for a comprehensive revamp of payment system improvements that would include digital currencies.
The Australian government is going to release three crucial documents on Monday aimed at reforming the crypto industry. They would include suggestions for a new taxation structure for cryptocurrencies, rules to ensure investor protections against unscrupulous sellers, and regulations for regulating digital banks, crypto exchanges, and brokers.
The government would also start consultations with industry insiders for the preparation and implementation of many of the reforms by the end of the year.
It is noteworthy to mention that Australia aims at being a key player in the Web3 space and aims at incentivising innovation in the sector. Speculations are being made that the new suggested reforms would be pro crypto. Crypto taxation would also be eased in Australia to promote the country’s position as a crypto friendly nation.
It's worth noting that as the Web3 wave has transformed finance and people are finding new ways to profit from crypto assets, governments across the world are taking two approaches to these new developments.
On one hand, some countries are lowering taxation on crypto asset gains. South Korea's newly elected President campaigned on a vow to drastically increase the tax threshold on crypto assets. Thailand's cryptocurrency taxation policy has also recently been relaxed. Dubai has also introduced regulations to bolster the city’s stance in the Web3 revolution.
On the other hand, some countries a severely taxing crypto gains and imposing strict regulations on the industry. India recently slapped a 30 per cent tax and 1 per cent TDS on crypto gains. China has also cracked down on the crypto industry by outrightly banning private mining of cryptocurrencies. Morroco, Oman, Algeria, etc. are countries with strict regulations on cryptocurrencies.
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