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Source: Lawyer Jin Jianzhi
For cryptocurrency companies, Australia has always been a neutral and stable jurisdiction.According to Australia and New Zealand’s largest exchange SwyftX “Australian Crypto Survey 2023”, Australia has the highest cryptocurrency adoption rate in developed countries by 23%, which is 16%higher than the United States.Although the Australian population is only over 20 million, the use of extremely high cryptocurrencies may pay attention to the Australian market.
01Who is the regulatory authority?
MainlyAustralia Securities and Investment Commission(The Australian Securities and Investments Commission (ASIC).
ASIC is Australia’s financial regulatory agency that is responsible for monitoring Australia’s financial markets and financial services industries to ensure the fairness, transparency and effective operation of the market, protect the interests of investors, and safeguard the stability of the financial system.At the same time, ASIC is also responsible for supervising financial services and businesses related to virtual currency.In 2021, ASIC clarified its expectations of encrypted assets in exchanges trading products (ETP) and other basic assets of investment products, as wellCompany) and Australian Financial Services License (AFSL) holders’ expectations of encrypted assets (see ASIC No. 230 Information Table (INFO 230)).In addition, ASIC also put forward expectations for the supervision of certain encrypted assets (see ASIC No. 225 Information Form (Info 225)).
02What is the regulatory framework?
Mainly law enforcement supervision rather than legislative supervision.
At present, Australia does not have a separate legislation on cryptocurrencies. Although there are already legislative amendments to adapt to the use of cryptocurrencies, so far, these amendments are mainly concentrated in transaction relations (such as issuance and exchange process) and activities involving cryptocurrencies involving cryptocurrencies., Not the cryptocurrency itself.Although government departments are already conducting consultations and consultations for financial service providers and stable currency supervision.
ASIC has adopted high -profile law enforcement operations on cryptocurrency companies.The focus of the action is suspected of operating and investors’ protection, but the “law enforcement supervision” method adopted so far has strengthened the clarification of legislation.Although there is no legislation to deal with cryptocurrencies as an independent legal field, this does not prevent it from incorporating it into the existing system of Australian lawEssence
03What are the specific regulatory rules?
Lawyer Mankun Jianzhi introduced the common scenes.
1. Cryptocurrency buying and selling
Cryptocurrencies are regulated by the current financial service supervision system in Australia.
The entities that carry out financial services in Australia must hold the AFSL license (Australian Financial Services Licence) or obtain exemption.The encrypted asset service provider that constitutes financial products will require the AFSL license and related compliance and disclosure requirementsEssenceThe Australian Corporation Law (CTH) (CTH) defines the definition of “financial products” and “financial services” very widely. ASIC said in INFO225 that crypto assets with similar characteristics with existing financial products will trigger relevant regulatory obligations.According to specific circumstances, encrypted assets may constitute the equity, securities, derivatives, or derivatives of management investment plans (collective investment instruments), or are more widely defined, which are supervised by AFSL licenses.
Similarly, foreign financial service providers that carry out financial services in Australia must hold AFSL licenses unless they are exempt.It is even necessary to establish or establish a subsidiary in the local area (that is, register and set up branches in ASIC).
Even if crypto asset trading is not regulated by the company’s law, it will be regulated by the Australian Consumer Law, which prohibits misleading or deception for consumers.Therefore, in the propaganda materials of cryptocurrencies, it is necessary to be careful to ensure that there is no false information and ensure that the buyer is not misleaded or deceived.
2. Taxation of cryptocurrencies
The impact of the taxation of cryptocurrency holders depends on the purpose of acquiring or holding cryptocurrenciesEssence
According to Treasury Laws ADENDMENT (2022 MEASURES No. 4) Bill 2022, according to Treasury Laws ADENDMENT (2022),The Australian Taxation Bureau regards cryptocurrencies as an asset holding or trading, not currency.Simply put, if you often trade cryptocurrencies and make money by using the market to rise and fall, this situation usually needs to pay personal income tax.If it is a long -term investment, capital VAT is usually required.
As far as Australian goods and service tax (GST) is concerned, since July 1, 2017, the supply and acquisition of cryptocurrencies do not need to pay goods and service tax. Therefore, consumers who use cryptocurrencies have taken two GST (buyingDigital currencies and when using digital currency to purchase other goods and services) have become only one time (only when using digital currencies to purchase other goods and services).
3. Entry -exit declaration
At present, Australia does not require cryptocurrencies held in exit.
The 2006 Anti -Money Laundering and Counter -Terrorism Finance Law (Australia Federation) (AML/CTF Law) stipulated that individuals and enterprises must submit reports when they bring physical currencies with more than $ 10,000 (or equivalent) to enter or leave Australia.This requirement is limited to “physical currency”.Although the “Anti -Money Laundering/Caminated Crime Crime Law” was amended in 2017 to solve some problems of cryptocurrency transfer and exchange, this revision did not see that anti -money laundering/cracking down on multinational organizational crime supervisionThe scope expands the border restrictions.
4. Blockchain project issuance
Although ASIC admits that ICO’s supervision is full of challenges,But it is not prohibited from ICOEssence
If the issued tokens are not classified as financial products, ICO is bound by the Australian Consumer Law; if the issued tokens are classified as financial products, ICO will be subject to the Australian Securities and Investment Commission Act (ASIC Act) in 2001 (ASIC Act)constraint.However, whether or not it involves financial products, the subject of the coin -issuing body must always ensure that the ICO does not involve misleading or deceptive behaviors or statements.Because the design of ICO may change during its life cycle, it is necessary to seek lawyers’ opinions to ensure continuous compliance.
5. Virtual currency mining
At present, Australia does not issue any ban on virtual currency mining.
However, the tax processing involved in virtual mining business will be relatively complicated, depending on many factors, including but not limited to whether the GST is registered, the specific situation of each mining business, etc.
04Conclusion
Blockchain and cryptocurrencies are the innovative technologies of the world today, providing new possibilities for financial services and transactions.Australia, as a neutral and stable jurisdiction, and a wide range of cryptocurrency adoption, provides a favorable environment for cryptocurrency companies.However, at this stage, due to the lack of clear legislation, Australia’s supervision of cryptocurrencies still has uncertainty, and enterprises need to pay close attention to regulatory dynamics and law enforcement actions to ensure the legality and sustainability of their business.
