Crypto is also known as Cryptocurrency. It is a form of digital currency
where no physical cash is needed and it uses cryptography to secure its digital
transactions. Cryptocurrency uses a decentralized system instead of being
regulated under the central authorities. It believes in a peer-to-peer system
where there is ease in transferring and receiving payments.
transactions take place, they are verified and recorded in a digital ledger and
the most known digital ledger is Blockchain. Like the physical currency is
stored in our wallets, similarly, cryptocurrency is stored in wallets but
digitalized ones. The first cryptocurrency was Bitcoin.
The author states the types of cryptocurrencies in Australia. The article
discusses the Crypto Regulations in Australia in this article. She explains the
current Australian crypto regulatory framework.
Types of Cryptocurrencies
Crypto has two classifications which are as follows:
Coins are those cryptocurrencies that are used to serve as decentralized digital
currency platforms. These include Bitcoin and Altcoin, which have their
independent ledger as existing as a unit value.
Cryptocurrencies other than coins which are served to make legal contracts,
decentralized financial products, and enterprise solutions, using real-world
applications are known as Tokens. Tokens require a proper record of transactions
for their functioning purpose.
Observing the technological growth in today's world, one can surely say that
cryptocurrencies are supporting investors by providing various benefits and soon
crypto will replace physical cash. Crypto shall be the only future currency.
Is Cryptocurrency legal in Australia?
The cryptocurrency was legalized in Australia in the year 2017, subject to the
Anti-Money Laundering and Counter-Terrorism Financing Act, of 2006. However, the
regulations relating to buying cryptocurrency are quite strict. The introduction
of crypto in Australia has made it a financial technology leader. The
cryptocurrency is viewed as a property or an asset by the Australian Tax Office,
thus, it is liable to capital gains tax.
Crypto Regulations in Australia
The Crypto Regulations in Australia are managed by the Australian Securities and
Investments Commission (ASIC). Though there have been various legislative
amendments, ASIC has informed that all measures and guidance are been taken for
cryptocurrencies. It has recently introduced a consultation process for crypto
assets. It seems to it that all the appropriate steps are taken for crypto
regulations in Australia and nothing illegal is practiced.
As per the December 2021 news updates, it is said that Australia Proposes New
Laws to Regulate Crypto. Australia proposes to create a licensing framework for
the crypto exchanges and launches a centralized bank digital system including
cryptocurrencies. Also, the country seems to expand its online payment
transactions providers like the famous providers' Apple Inc and Alphabet Inc's
Google as well as buy-now-pay-later providers like Afterpay Ltd.
government aims to keep its country in the frontiers of the technological fields
and grow more than the other countries. The number of Australians transacting in cryptocurrency is rising immensely, the global pandemic being a major reason
which has made everyone transact online.
As per the recent SBS News, Treasurer Josh Frydenberg has announced plans for
tougher regulation of non-cash payment systems such as cryptocurrency and
buy-now-pay-later (BNPL) services like Afterpay.
Mr. Frydenberg said while Australian investors will still bear risk in
cryptocurrency investments, more regulation is being introduced to promote
greater transparency and accountability.
Even though the Reserve Bank has been muted about the possibility of it creating
a digital currency to respond to the demand for cryptocurrency, Mr. Frydenberg
said the idea is under active consideration.
Further, let us know the New Australian Crypto Regulation Planned for 2022, said
Senator Braggs. He stated that Australia's planned cryptocurrency legislation
could be coming soon. Also, the planned legislation will make Australia a
leading nation in the digital asset world. He said that Australia needs a robust
policy framework for digital assets in line with consumer protection, investor
promotion, and market competition.
Current Australian Crypto Regulatory Framework
The Australian Crypto Regulations have planned for some kind of strict crypto
control. Nonetheless, the country is one of the leading crypto places having
legalized cryptos as early as 2017. As stated prior, the cryptos are considered
as property which makes them liable to capital gains tax and this helps in the
growth of the economy. There have been made amendments in the laws regulating
cryptos in the years 2018 and 2019.
Yet, the crypto regulations face various challenges but the major one is on the
definition of digital assets. Also, the crypto stakeholders keep on calling for
updates regarding the crypto regulations as cryptos are said to be the main
source in digital payment transactions.
As said by Senator Braggs at a Blockchain Australia-supported NFT virtual
event, "The new Australian crypto regulations would also address crypto energy
concerns. The Australian government is looking to attain a net-zero economy,
which seeks to balance the greenhouse gas produced and those removed from the
atmosphere. With the new regulations, Australian mining can soon rely fully on
renewable energy sources."
Best Crypto Exchange Australia - 3 Cheap Bitcoin Exchanges
As per the latest Economic Times news report, the following is said to be the
Best Crypto Exchange in Australia:
eToro is a Bitcoin trading platform regulated by the Australian Securities and
Investments Commission and has an Australian financial services license. eToro
has an office in Sydney, New South Wales. The platform is open to Australian
customers, traders in New Zealand, and many other countries across the world.
eToro is also regulated by the FCA and CySEC. It enables the buying and selling
of more than 120 crypto coins presently.
ByBit is an alternative Crypto trading platform in Australia. ByBit offers both
spot trading and margin trading for crypto (which is called futures trading),
which is not available in eToro.
Binance is the most famous Crypto trading platform which Australian users can
use. Although the user base is higher in Coinbase, the volume of trade is on the
higher side on Binance.
Investing in Cryptos in Australia is said to be beneficial for the person aware
of the regulations, yet he should be alert and not commit any illegal acts. A
person must be careful with online transactions and pay taxes on time.
Legal Trading in cryptocurrencies must be done instead of illegal for the want
of more monetary gains. As the Australian Securities and Investments
Commission's regulations are very severe and would not tolerate any wrongdoing.
Anything used excessively is harmful to a person. So, the use of
cryptocurrencies should be monitored by oneself.
Everything has pros and cons, similarly, it is with cryptocurrencies, so, along
with taking the benefits, one should be acquainted with the cons also.
The author would conclude by stating that, if a person wants to buy cryptos in
Australia then he must first find a licensed exchange to do so. Cryptos are said
to be a beneficial form of digital currencies and the Australian Securities and
Investments Commission has made several regulations for operating the
cryptocurrencies, keeping in mind the frauds being done through it.
has also stated the current regulatory framework of cryptocurrency and the best
bitcoins available to trade in Australia. Thus, the Crypto Regulations in
Australia seem to be the best, growing the country's economy and following the
laws of the country.
- Geeti Chawla, Amanda Ceruti. (2021, September 19). Australia: Understanding cryptocurrency in Australia.
- Mediawire. (2022, January 28). Best Crypto Exchange Australia - 3 Cheap Bitcoin Exchanges
- Staff Reporter. (2022, January 22). New Australian Crypto Regulation Planned for 2022 Says Senator Braggs.
- Biwa Kwan. (2021, December 8). Australia to toughen regulations for cryptocurrency and 'buy-now-pay-later' providers.
- Renju Jose, Byron Kaye. (2021, December 8). Australia proposes new laws to regulate crypto, BNPL.
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