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Australia’s Crypto Tax Consultation, ‘Token Mapping’ and ASIC’s Corporate Plan

Australia_Crypto_Regulations_August

Coinfirm’s Regulatory Affairs department has analysed the major crypto regulatory moves from Australia, including the:

  • Consultation on the Taxation of Crypto Assets
  • Treasury Ministers Announces Intention to Conduct ‘Token Mapping’
  • ASIC Corporate Plan: Crypto Assets as a Core Strategic Project for the 2022-26 Corporate Plan

Consultation on the Taxation of Crypto Assets

The Board of Taxation of the Australian Government has issued a consultation on the taxation of crypto assets. The Board will hold a series of consultations in September and accept written consultation responses by end of September 2022. The consultation guide provides a background on the crypto assets’ taxations outlining the:

  • Current tax treatment of crypto assets in Australia
  • International crypto tax initiatives
  • Key uncertainties relating to crypto taxation (where to tax/what to tax/when to tax)

15 consultation questions address the following issues:

  • Current tax treatment of crypto assets
  • Awareness of the tax treatment of crypto assets
  • Characteristics and features of crypto assets
  • International tax treatment
  • Changes to Australia’s taxation laws
  • Administration of Australia’s taxation laws

Treasury Ministers Announces Intention to Conduct ‘Token Mapping’

The media release from Australia’s Treasury Ministers states that the current government intends to improve Australia’s regulatory system for managing crypto assets.

As the first step, the Treasury will prioritise ‘token mapping’ work in 2022, which will help identify how crypto assets and related services should be regulated

(…)

The aim will be to identify notable gaps in the regulatory framework, progress work on a licensing framework, review innovative organisational structures, look at custody obligations for third party custodians of crypto assets and provide additional consumer safeguards.

ASIC Corporate Plan: Crypto Assets Are a Core Strategic Project for the Next Year of its 2022-26 Corporate Plan

The Australian Securities and Investments Commission (ASIC) has released its Corporate Plan, outlining its strategic priorities for the next four years. ASIC’s four external strategic priorities are:

  • Product design and distribution: Reduce the risk of harm to consumers of financial and credit products, caused by poor product design, distribution and marketing, especially by driving compliance with new requirements.  
  • Sustainable finance: Support market integrity through proactive supervision and enforcement of governance, transparency and disclosure standards in relation to sustainable finance.  
  • Retirement decision making: Protect consumers, especially as they plan and make decisions for retirement, with a focus on superannuation products, managed investments and financial advice.  
  • Technology risks: Focus on the impacts of technology in financial markets and services, drive good cyber-risk and operational resilience practices, and act to address digitally enabled misconduct, including scams. 

Crypto assets are listed as a focus area of one of the core strategic projects supporting these priorities.

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