Cryptocurrency has been booming in Australia in recent years. In the coming year, more opportunities are cropping up as trends see a shift toward further adoption.
Because Australia is one of the world’s most prominent adopters of crypto, you’ll want to know what’s in store in 2022.
Digital Currency Exchanges Will Introduce Legal Structures
As with any other business, if a central authority is involved, then it is vital that they follow a legal structure to operate. Because of the announcement of the Senate Select Committee on Australia as a Technology and Financial Centre, cryptocurrency investing is going to see Digital Currency Exchanges (DCE) become regulated.
DCEs will have to adhere to the Anti-Money Laundering and Counter-Terrorism Financing Act if they want to continue operating in Australia. This also introduces limited liability to token owners by way of the Decentralised Autonomous Organisation (DAO).
A New Framework Will Be Established By the End of the Year
Although changes are continuously taking place throughout the year, we can expect the finalised framework created by the Board of Taxation by the end of 2022.
This will establish clear guidelines on cryptocurrency that will better manage the way holders make use of it in the same way that traditional currencies are managed. These mandates are meant to allow more protection for token holders and businesses adopting the system.
The Board of Taxation Will Regulate Digital Assets More Heavily
Consumers are still working out the benefits and risks that come with crypto exchange, so there is a recognised need for more regulation that will inform the typical consumer on the implications of taking on digital assets and such transactions.
This also places more pressure on applying taxation to crypto tokens and other digital financial circulation.
Existing Tokens Will Be Monitored to Inform Future Policy
Existing tokens, such as Bitcoin, will be monitored to set new policies in place with the expectation that new crypto entries will comply. This will be the catalyst behind the new rules and regulations that will be put into place.
While some may feel wary about the coming pains of such a shift, the clear regulation is actually expected to help encourage a more unified system that welcomes newer cryptocurrency tokens into the fold.
What Else Is Happening With Cryptocurrency in Australia?
Mainstream adoption of cryptocurrency has become a big deal over the past year. With that in mind, the financial district is looking into a means to make the system more manageable in a traditional banking system while still providing the anonymity and security that has made crypto such a promising investment for many individuals.
In turn, businesses can expect more consumers to buy cryptocurrency. This will lead to more platforms and channels accepting it as a valid form of payment, which is a win-win for investors and businesses alike.
The question now is how trades will be regulated to meet the ethical concerns of emissions brought on by mining.
One thing that has been made clear is that cryptocurrency is here to stay. While the future may be hazy, it’s clear that Aussie crypto investment is still on the rise and will only continue to grow.
For more crypto updates, check out the Brawler’s Guide. We are a resource hub for big thinkers and big doers. If you’re an ambitious upstart, you’ve come to the right place.