Australia's crypto regulation move now promises an efficient framework to ensure safer transactions and investments. But is this actually a good thing for blockchain fans?
In this photo illustration of the litecoin, ripple and ethereum cryptocurrency 'altcoins' sit arranged for a photograph on April 25, 2018 in London, England. Cryptocurrency markets began to recover this month following a massive crash during the first quarter of 2018, seeing more than $550 billion wiped from the total market capitalisation.
Right now, cryptocurrencies are still not completely regulated by any government across the globe. Officials find it hard to control since the crypto market works very complexly.
Although this is the case, many countries, including Australia, are trying to regulate the activities in the crypto market.
Australia's Crypto Regulation Move
According to News.Com.Au, Australia will soon start regulating cryptocurrencies in the country.
A visual representation of the digital Cryptocurrency, Bitcoin on October 23, 2017 in London, England. Cryptocurrencies including Bitcoin, Ethereum, and Lightcoin have seen unprecedented growth in 2017, despite remaining extremely volatile. While digital currencies across the board have divided opinion between financial institutions.
Also Read: Best Crypto Wallets That Offers Protection For Your Bitcoin and Other Cryptocurrencies
"The government can't guarantee your crypto any more than it can guarantee a painting or a share in a company, and nor should it," said Jane Hume, Australia's Financial Services Minister.
Hume added that it would ensure that a regulatory framework will arrive, making crypto transactions and investments safer, better, and more secure.
The Australian government is expected to release the terms of reference for two separate investigations into the cryptocurrency sector.
On the other hand, the Board of Taxation is now reviewing the proper taxation process for digital currencies. The final output of BoT is expected to arrive by the end of 2022.
Is Crypto Regulation Actually a Good Thing?
NextAdvisor reported that crypto regulation is a good thing for digital coin investors. Many blockchain experts claimed that once a digital coin is regulated, it will have a more stable value compared to uncontrolled digital currencies.
However, this also means that there will be taxes. Because of this, many crypto enthusiasts are still hesitant when it comes to cryptocurrency regulation.
But, you need to remember that crypto will be more legal if the government taxes it. Once this happens, crypto investors will have more protection against financial losses from fraudulent activities within the crypto ecosystem.
In other news, Hive Blockchain and Intel partnered to provide more efficient crypto mining devices. Meanwhile, Biden signed the recent crypto regulating executive order.
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Written by: Griffin Davis
