Senator Andrew Bragg presented a new rule in which he highlights the need for more control over DAOs because they represent latent threats to the tax core.
Australia is moving toward crypto-friendly regulations after some officials and representatives under the political spectrum pledged to lay the legal groundwork for the crypto environment.
Australian Senator Andrew Bragg has revealed a new rule named the “Digital Services Act” (DSA), ranging from a licensing system for digital asset exchanges to a tax framework. It also mentions DAOs while intending to ensure protection for crypto market investors.
Bragg presented the legislative package during his keynote address for the annual Australian Blockchain Week conference.
Australia Initiates its Steps toward Crypto Regulation
Bragg outlined the four primary cores of DSA. He explained that the regulation would be neutral, have more flexible rules, and get regulated by a Ministry instead of an agency.
The senator said that this implementation would show that Australia is eager to carry out business activities. He expressed that everything is clear enough, and expressed confidence that such a bill will help a country like Australia gain a vital role in the global crypto industry.
The Australian Liberal Party senator had already expressed that the DSA would desire to bring a more solid regulatory oversight and discourage entities from seeking all the alternatives they have at hand. As Blockworks highlighted, the Senate Committee executed strategies to regulate the sector last year and presented a report highlighting the considerations of the legislators in December.
The Australian government revealed three documents on Sunday, including a consultation highlighting the input from industry players on approaches to generating a licensing and custody system ideal to have more control over digital assets. The other documents show a crucial path on the road to achieve more goals on the sector’s structure, which the government desires to execute by 2022.
A Framework for DAOs and a New Taxation System
Digital Asset taxes represent another vital branch of Bragg’s proposed legislative rules. According to a draft, the county’s Board of Taxation would require to review the nation’s crypto tax environment.
According to Blokworks, the board will take into account the current tax climate for digital assets, learn more about the asset classes features, set a comparative view over the existing framework with that of comparative jurisdictions, and take into account whether any changes would be vital for applying in these cases. The review will take effect because it would not increase the overall tax obligations for investors.
On the other hand, Bragg stood in front of the DAO during his speech. According to media outlets, the senator suggested the government consider these rules and proposed that they should have a position of power under the Corporations Law. According to Bragg, DAOs must face a regulation urgently.
According to the DSA proposal, the government would have the mission of creating a framework for DAOs without stifling its basic concepts. The standards would grant total access to DAO audit, assurance, and disclosure features that would help users distinguish between retail and large-scale organizations.
By: Jenson Nuñez
