Australia’s crypto regulation move now promises an efficient framework to ensure safer transactions and investments. But is this really a good thing for blockchain fans?
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In this photo illustration of the cryptocurrency ‘altcoins’ Litecoin, Ripple and Ethereum, are photographed on April 25, 2018 in London, England. Cryptocurrency markets began to recover this month after a massive crash during the first quarter of 2018, with more than $550 billion wiped from the total market capitalization.
At this time, cryptocurrencies are not yet fully regulated by any government around the world. It is difficult for officials to control as the crypto market works in a very complex way.
Although this is the case, many countries, including Australia, are trying to regulate activities in the crypto market.
Australia Crypto Regulation Movement
According to News.Com.AuAustralia will soon start regulating cryptocurrencies in the country.
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A visual representation of the digital cryptocurrency Bitcoin on October 23, 2017 in London, England. Cryptocurrencies including Bitcoin, Ethereum and Lightcoin saw unprecedented growth in 2017, despite remaining extremely volatile. While digital currencies across the board have divided opinion among financial institutions.
“The government can’t guarantee its crypto any more than it can guarantee a painting or a stake in a company, and it shouldn’t either,” said Jane Hume, Australia’s Minister for Financial Services.
Hume added that it would ensure the arrival of a regulatory framework, making cryptocurrency transactions and investments safer, better and more secure.
The Australian government is expected to publish terms of reference for two separate investigations into the cryptocurrency sector.
On the other hand, the Tax Board is now reviewing the proper tax process for digital currencies. The final result of BoT is expected to arrive at the end of 2022.
Is crypto regulation really a good thing?
NextAdvisor reported that crypto regulation is a good thing for digital currency investors. Many blockchain experts claimed that once a digital currency is regulated, it will have a more stable value compared to uncontrolled digital currencies.
However, this also means that there will be taxes. Because of this, many crypto enthusiasts are still hesitant when it comes to crypto regulation.
But you have to remember that cryptocurrencies will be more legal if the government taxes them. Once this happens, crypto investors will have more protection against financial loss from fraudulent activities within the crypto ecosystem.
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Written by: Davis Griffin
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