The government of Australia reportedly plans to identify which cryptocurrencies are widely used in the country and place them under a regulatory framework by the end of 2022.
Numerous Australian politicians have hinted about a possible crypto regulatory plan over the past few years. Earlier in2022, the Labor Party won the elections, while its leader Anthony Albanese became the nation’s new Prime Minister. Upon his appointment, he said implementing regulations on the local cryptocurrency sector is one of the government’s main goals.
‘Token Mapping’ Becomes a Priority
According to a recent coverage by Bloomberg, Albanese’s administration will examine which digital assets are the most popular in Australia and decide how they should be regulated. Treasurer Jim Chalmers said this process, classified as “token mapping,” will occur before the year’s end.
The Labor government will also monitor the existing regulatory policies and seek to update them. Additionally, it will check how different cryptocurrency firms, including exchanges and custodians, service their clients to ensure maximum protection for investors.
“With the increasingly widespread proliferation of crypto assets — to the extent that crypto advertisements can be seen plastered all over big sporting events — we need to make sure customers engaging with crypto are adequately informed and protected,” Chalmers stated.
Speaking on the matter was also Caroline Bowler – Chief Executive Officer of BTC Markets. In her view, “token mapping” will have numerous benefits, such as providing “greater clarity to crypto investors,” assisting watchdogs in shaping comprehensive rules, and aiding companies in developing innovations.
It is worth noting that the former government under Prime Minister Scott Morrison intended to apply rules to the domestic digital asset industry, too. Due to their loss at the elections, though, the ball is in the court of the Labour party now.
Crypto Taxation is Also on the Agenda
Several months ago, the Australian Taxation Office (ATO) said it will focus on people that record capital gains or losses from cryptocurrency transactions and oblige them to pay taxes.
The ATO’s Assistant Commissioner – Tim Loh – said the entity is aware that Australians have shown great interest in digital assets lately. A survey conducted last year estimated that 17% of Aussies have some cryptocurrency holdings, while Bitcoin (BTC), Ether (ETH), and Dogecoin (DOGE) are the most popular assets.
The ATO did not disclose what the tax rate will be. However, it warned investors that once enforced, they should abide by the rules and report their capital gains on crypto transactions accurately. Otherwise, they could face penalties.