Australia Blockchain Week was opened by Andrew Bragg, an Australian senator. He presented a powerful legislative proposal that he hopes will help to create a new Digital Asset ecosystem.
The Digital Services Act (DSA), legislative package is and calls to reform crypto market licensing, custody, decentralized autonomy organizations (DAOs), taxation, and debanking. In his speech at the conference, Senator Bragg stated that he expected the Act’s legislation to “protect [crypto] consumers from malicious operators.”
Senator Bragg explained the four major pillars by which the DSA is guided. Bragg explained that the DSA would not be technologically biased, follow broad principles and be regulated by a Minister, rather than a bureaucratic agency, and utilize government resources and personnel. He believes that such guidance will show Australia that it is willing to play a larger role in the crypto industry.
“This will demonstrate that Australia is open to business and that things are clean and clear.”
DAOs were also a topic that Senator took on, challenging different branches of government to consider them seriously. They pose a threat to the tax base, he said.
The Parliament of Australia has published data that shows the company tax accounts is the second-largest source of government revenue, after income tax. DAOs, however, are not subject to the same tax as companies.
Senator Bragg stated that the country’s dependence on company taxes is not sustainable if more organizations become DAOs. The DSA will ask the government to create a framework that can establish standards for DAOs, without compromising their core principles.
These standards would ensure that consumers have access audit, assurance, and disclosure services from DAOs to help distinguish between wholesale and retail businesses. Senator Bragg asked for the Treasury’s attention to these issues, while still allowing DAOs to “continue to live up to the name they have been given.”
— Senator Andrew Bragg (@ajamesbragg)
March 20, 2022
Michael Harris, head of corporate development at Swyftx in Australia, is in favor that the government establish higher standards for the domestic cryptocurrency industry. Today, he told Cointelegraph that exchanges do not have to be afraid of higher standards. “Most Australian exchanges take their duty to customers very seriously.”
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Harris said that Australia should lead the developed world in crypto regulation due to its high adoption rate. According to a survey by pollster Finder , found that 22.9% owned crypto between October and December 2021. Harris stated that:
“We consider this a significant step forward. Australia has one the highest crypto adoption rates in developed countries. It is logical for us to be leaders in regulation.
The use of crypto-currency by nations and individuals to circumvent economic sanctions is a major concern in the crypto market. The US Senate is having a heated debate about whether cryptocurrency will allow the Russian government to continue funding its military operations in Ukraine.
Elliptic, a blockchain tracking company, discovered that some sanctioned people are holding crypto. Senator Bragg however stated that the Australian government was unable to enforce retribution under the Digital Currency Exchange (DCE), laws. The DCE’s inability to have jurisdiction motivated the creation of new proposals to stop sanctioned individuals taking advantage of lax crypto laws.
“The truth is that we do not live in a libertarian paradise. “We cannot have regulatory arbitrage.”