Australian senator Andrew Bragg called for “urgent” regulation of decentralized autonomous organizations (DAOs) under the nation’s Corporations Act as part of his Digital Services Act proposal at Blockchain Week Australia on Monday.
See related article: New crypto regulation — including tax reform — coming to Australia
Fast facts
- DAOs can replace companies and are therefore an “existential threat to the tax base” since they are not liable to pay company tax, Bragg said, while calling for their regulation.
- By the end of 2022, the government is expected to receive a report on digital asset taxation, undertake a token mapping exercise and examine the regulation of DAOs.
- Bragg added that his call for regulatory reforms is intended to protect the public against malicious actors and signal that Australia is “open for business.”
- Australian Treasurer Josh Frydenberg announced the nation’s ambitions to embrace cryptocurrency developments in December as part of broader reforms to the country’s payments sector.
- Minister for digital economy and Liberal Party senator Jane Hume said at the event the government is looking to introduce a new licensing regime that will provide crypto exchanges with a “badge of approval” and introduce custody requirements.
See related article: Australia announces biggest overhaul to payments in 25 years — eyes now set on crypto