- Opposition senator, Andrew Bragg, spoke at The Australian Crypto Convention over the weekend, telling attendees that the current government is dragging its feet on crypto.
- Bragg said the government’s crypto go-slow is harming both Aussie investors and crypto startups, and claims the government prefers a ‘regulation through enforcement’ approach.
- Meanwhile, the Treasury Department released a consultation paper on Friday seeking feedback on its plan to implement the OECD’s new crypto tax reporting standard.
Opposition senator and outspoken supporter of the digital assets industry, Andrew Bragg, lambasted the federal government over the weekend for its lack of regulatory action on cryptocurrencies and its failure to foster innovation in the nascent industry.
Speaking at The Australian Crypto Convention in Sydney, Senator Bragg told attendees that the government’s lack of legislative action on crypto has left Aussie investors exposed to an unregulated market and forced crypto startups overseas to seek funding from more forward-thinking jurisdictions.
Bragg said the current government has dropped the ball when it comes to crypto, claiming it has failed to capitalise on the work his government had done during their time in charge. He also accused the Labor government of not wanting to see the digital assets industry properly regulated, instead preferring a ‘regulation through enforcement’ approach:
Labor have put us in the regulatory slow lane, because the uncomfortable truth is that they don’t want crypto regulation…the industry now faces regulation via enforcement, with ASIC left to pick up Labor’s slack.
Senator Andrew BraggMeanwhile, last Friday the Treasury Department released a consultation paper on its plans to implement the Organisation for Economic Co-operation and Development’s (OECD’s) crypto asset reporting framework (CARF). The CARF is a new international standard for crypto tax reporting that aims to minimise global tax evasion using crypto assets — 47 countries, including Australia, have agreed to implement the framework.
Related: Stand With Crypto Expands to Australia in Effort to Educate Local Policymakers
Australian Government “Goofing Around” On Crypto, Says Bragg
Senator Bragg didn’t pull any punches in his speech to the conference, saying that the Australian government is “goofing around” when it comes to crypto, essentially playing slow-ball on legislation and failing to capitalise on the opportunity presented by the digital assets revolution.
Bragg said this go-slow is harming both investors and builders:
First, it has left consumers exposed to the risks of an unregulated market. Second, it has driven investment offshore, crypto exchanges want regulatory certainty, which this Labor Government is unwilling to give them.
Senator Andrew BraggThe senator added that his government had left Australia in a strong position to regulate crypto, but the current government has failed to capitalise on this work, leaving Australia at the back of the global pack:
Our strong financial regulatory framework in combination with a sound regulatory framework, positioned us to become a regional hub for crypto assets. As other developed economies in our region, like Hong Kong, Singapore and Japan implement crypto regulations, the opportunity to become a crypto hub is fast slipping away.
Senator Andrew BraggTreasury Moves To Implement International Tax Reporting Standard For Crypto
There is at least movement on ensuring we’re all paying our taxes on our crypto holdings — it’s better than nothing, I guess.
Treasury’s release of its consultation paper on implementing the international crypto tax reporting standard, CARF, means that action is underway to force crypto exchanges and wallet providers to report certain information to tax authorities in order to clamp down on crypto tax evasion.
In the consultation paper, Treasury says it’s aiming to have the reporting requirements in place sometime in 2026, but adds that this will depend on the passage of legislation through the parliament which could cause delays:
Subject to a final decision of Government, it is envisaged that CARF reporting requirements would commence from 2026, to ensure the first exchanges between the ATO and other tax authorities could take place by 2027. This timeframe would also be subject to future legislative priorities.
Treasury Consultation Paper on CARF
Related: Study Finds 1.5 million Australian Crypto Owners Confused Over Tax Time
Several other countries are also actively working to implement the CARF standard, including Canada, Switzerland and New Zealand. At this stage it looks like these countries are also targeting having the reporting requirements in place by around 2026-2027.
Credit: Source link
