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Australian Senator for New South Wales Andrew Bragg has asserted that robust regulations would “bring credibility and validity” to the country’s emerging digital asset sector.
Speaking to local publication Finder on November 2, the chairperson of the Senate Committee on Australia as a Technology and Financial Centre, commented that the country’s crypto sector has shown a willingness to embrace greater regulatory oversight in a bid to attain mainstream legitimacy.
“To my surprise, I’ve never seen an industry so keen for regulation,” said Senator Bragg.
“Almost everyone I’ve spoken to in this industry understood that regulation would bring credibility and validity to this sector.”
Bragg added that he expects new regulations overseeing the crypto industry will be introduced in Australia within the coming 12 months.
Bragg’s comments come after his senate committee published its ‘Crypto Report’ last month.
The report made 12 recommendations intended to tackle key issues pertinent to the cryptocurrency sector, including a tax discount for crypto miners using renewable energy, new licenses for crypto exchanges, an overhaul of capital gains tax in decentralized finance (DeFi) and new laws to govern decentralized autonomous organizations (DAO),
The document also acknowledged that the current lack of legislative clarity regarding digital assets “is creating uncertainty for project developers, businesses, investors and consumers.”
According to Bragg, the recommendations will enable Australia to compete with leading jurisdictions for the blockchain and crypto industries including Singapore, the United States and the United Kingdom.
Surveys show that around 25% of Australians either currently or have previously held cryptocurrencies, making Australia one of the biggest adopters of cryptocurrencies on a per capita basis.
The Australian Taxation Office (ATO) estimates there are over 600,000 taxpayers that have invested in digital assets in recent years.
Related: Average Aussie crypto portfolio grew 258% in FY 20–21, survey reveals
Swyftx, a Brisbane-based cryptocurrency broker with over 100 staff employed in Australia, called for the government to facilitate a growing demand for access to the digital asset industry.
“Bringing digital assets inside a tailored and sensible regulatory perimeter is a far better solution than forcing consumers to operate outside of it with unregulated, foreign providers,” Swyftx told the Committee.
Blockchain Australia also commented on the need for Australia to enact appropriate regulatory reform in order to keep pace with other jurisdictions, the report stated.
“Australia is lagging behind international jurisdictions in the development of a fit-for-purpose crypto-asset framework,” the industry association commented