Australia warming up to crypto?

Australia is not a crypto-friendly place. In the absence of comprehensive laws, the crypto industry is operating largely in a regulatory grey area, and the country’s banks are famous for denying service to crypto companies.

Hopefully, this is going to change.

This Wednesday, the Select Committee on Financial Technology and Regulatory Technology published a report addressing the de-banking problem, and recommending, among others, licensing regime for crypto service providers, clearer tax treatment for crypto traders, crypto custody regime, company tax discount for crypto miners using renewable energy, and a possibility to register DAOs.

What’s more, the senators went further and put in question the famous FATF “travel rule”, obliging companies to obtain and hold KYC data on the sender and the receiver of every transaction over $1k. When it comes to decentralized services, this is of course impossible, and the rule itself has not been enforced in any country. Kudos to the Australians to highlight its ridicule.

The report has been applauded by the crypto industry players, who would have more certainty and legal protection if it becomes law. It can attract much talent and investments into Australia and give it a leg up in further developing its fintech industry.