Australian Senate Committee proposed changes to crypto industry regulation

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The Australian Senate Committee has recommended more clarity on DAO regulation, new provisions on income tax on cryptocurrencies and incentives for green miners.

In a report, the Australian Senate Committee (ATFC) proposed issuing a new DCE license for cryptocurrency exchanges. To obtain permission, companies will have to comply with the requirements of the regulator for financial reserves and audit. However, the requirements must be scalable so that small operators do not suffer.

You also need to update the rules for taxing income from cryptocurrencies. The committee proposed that income tax on cryptocurrencies should only be levied if transactions “do indeed result in a well-defined capital gain or loss.”

In addition, ATFC recommended to the Australian Treasury Department to analyze the viability of the state digital currency, and put forward a proposal for a 10% tax rebate for mining companies using renewable energy sources.

A key recommendation was the creation of a new regulatory framework for the DAO that deals with decentralized community and protocol governance. According to ATFC, “DAOs are clearly not covered by any of the existing structures of Australian companies, and this regulatory uncertainty prevents the creation of projects of significant scale.”

Earlier, Australian lawmakers said that a plan for regulating the cryptocurrency industry will be presented in October, which could be adopted as early as 2022. In August, Blockchain Australia accused the country’s government of inaction and unwillingness to develop legislation to regulate the industry. Later, cryptocurrency companies appealed to a special committee of the Australian Senate with complaints about denial of service by banks without explaining the reasons.

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