How is Australia Growing As The Crypto Continent? Everything You Need To Know
Apr 18, 2018 Posted / 1302 Views
Cryptocurrencies are the new rebels in the town! For them, regulations and control hold no meaning. For them, it is always being decentralized and in control of only themselves! That’s probably why the majority of the countries around the world doesn’t bother to support it properly, and that’s why it is facing so much trouble.
While this was all easy and okay when they were just coming up, now when at least the world's third population trades in them, it is important that they gain this control and freedom, and obviously the due recognition by the countries. However, the ruckus was so much so that a G20 Summit was called to include this virtual currency into the real-time thing!
A country like Australia, however, came to the rescue. Australia has shown some very positive signs regarding the future of cryptocurrencies in its land and has made it clear that it will be supporting the growth of this virtual currency as well. They have a positive outlook towards its regulation and the terms which will govern it in the country.
Slow and steady wins the race. Right now Australia may not come out to be one of the biggest markets for Bitcoin (BTC) or for that matter any other cryptocurrencies, but it is a growing one.
Australia is currently ranked 14th globally for Bitcoin volume as a currency in use. The AUD volume in it was $2,180,190 or 281 bitcoins in circulation in just a 24 hour period!
Japan holds the top spot here with around 60% market share of BTC in circulation in 24 hours.
On the 11 of April, the government of Australia through its Australian Transaction Reports and Analysis Centre (AUSTRAC), had made an announcement regarding all its tangible plans to implement certain new rules on the regulation of all the cryptocurrency exchanges. The most important one of that was: “Digital currency exchanges (DCE), with a business operation located in Australia, must now register with AUSTRAC and meet the Government’s AML [anti money laundering]/CTF [counter terrorism financing] compliance and reporting obligations,” the announcement read.
Three exchanges have already been licensed by them- BTC Market and the independent Reserve based out of Sydney. The third one was “Blockbid,” yet another Melbourne based exchange gained AUSTRAC license.
This regulation is not being done to regulate the money to avoid its use for tax evasion or terrorism, but also to strengthen the tie with the public by strengthening the confidence in such things.
Since the exchange is now leading the way for this, it simply shows the support offered by the government by trusting it with an exchange to regulate the crypto. It is a positive sign for the trust shown.
Australia, on lines of Japan, has declared Bitcoin as legal tender and thus it now holds real-time value
It was announced in the September of 2017 that Australia would be taking away their initial law on double taxation for the digital currency. The legal bill ended the practice of taxing the purchase of Bitcoin and other cryptocurrencies according to the Australian goods and services tax (GST).
ICOs are legal and quite active too! The country has seen quite a lot ICO coming out in the market all legal and right though. These too are governed by certain rules and regulations of their own, again regulated by the ASIC or the Australian Securities and Investments Commission.
The tax regulation is under control too, and no tax exemption has been given till now. They have a proper tax structure like any good or service is taxed in Australia.
The response from the industries has been phenomenal! But with the regulation being made, the new rules which came up suddenly are creating a little issue with it.
Loretta Joseph, chair of the Australian Digital Commerce Association (ADCA) says that, “The ADCA worked very closely over the last 18 months with the Australian government and regulators, AUSTRAC, to bring clarity and oversight to an industry that needed guidance and formal regulation in order to allow industry players to adhere to standards. Australia, as a mature market with one regulator who is open to innovation and a government with an innovation agenda, can be a clear leader in the responsible adoption of blockchain technology."
However, a lot of bubble talk is still happening in the town, and with all the attention of media that bitcoin gets, it only gets stronger by the time. All this is too flattering sometimes and simply shifts the focus away from what the issue is.
On this, Nguyen explains why this happens here so much. “ By investing resources in research and new legislation, Australia’s government shows its commitment to the perceived longevity of cryptocurrencies as it tries to answer these questions. The government has a responsibility to protect its members and thus by amending legislation to include cryptocurrencies, rather than prohibiting them, it signals a belief of a future for the asset class beyond the market’s current exuberance.”
Bitcoin will stay in Australia for long, for its authorities have released its potential and its life. This will help the cryptocurrencies grow better with time.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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