An Australian Senator has brought up a new act that discusses the issues and their respective solutions, regarding cryptocurrencies, taxes and decentralized autonomous organizations.
Australian Senator by the name of Andrew Bragg recently presented a Landmark Digital Services Act during a blockchain-related weekly conference, hoping to evolve the entire current ecosystem that would assist in the protection of consumers and traders in the region of Australia. Consumer protection is one factor that is crucial for any financial system to operate effectively and needs to be given the utmost importance.
New Digital Services Act Explained
This new Act presented by Senator Andrew Bragg demands for new rules and regulations in terms of licensing, Decentralized autonomous organizations (DAO) and taxation for the cryptocurrency space operating in the region of Australia. Senator Bragg also specifically referred this new act, as it would assist in the protection of cryptocurrency traders and consumers from dangerous and malicious exploiters.
As for the main highlights, Senator Bragg mentioned about four target areas that the Digital Services Act is based upon, onto which he described that this new Act is very fair, adaptive and neutral when it comes to different technological aspects and is to be regulated by a proper Minister instead of an agency or the utilization of government-based resources or workers. Bragg stated that in his opinion, this new Act will help Australia in evolving financially and adapt to this new growth of the cryptocurrency sector, bringing forth new businesses with a positive and strong stance.
Senator Bragg on DAOs
Regarding DAOs, the Senator said that they should be taken seriously, as they are a “threat to the tax base” operating under currently applied regulations. Data extracted by the Australian Parliament highlighted that company-based taxation accounts come in second position for the total amount of revenue generated by the government, coming behind income tax that holds first, but the surprising thing is that DAOs are not counted as companies, when it comes to tax collection. Senator Bragg specifically mentioned that that if Australia was to focus on increasing DAOs and keeps on relying on firm taxes, then it will result in low sustainability.
Welcoming new Regulations
Michael Harris from the crypto exchange named, Swyftx stated that the firm welcomes the government to implement better standards regarding the cryptocurrency market in Australia and majority of exchanges are in favor of this, because they are already aware of consumer protection and make sure to take consumers very seriously.
