Australia and cryptocurrency have become two words widely associated with each other in the last year. With new regulations coming into place, the growth of cryptocurrencies down under has increased exponentially.
The country has already been very proactive and positive about the regulation of crypto and is already starting to implement large-scale plans such as exchange registrations.
As a result of this proactive approach to Bitcoin and similar cryptocurrencies, the country is building itself a good foundation to become one of the next big cryptocurrency hubs. Australia is allowing for the mainstream adoption of blockchain and crypto and this, in turn, will benefit all sectors. From banks to supply chains, the financial sector to small businesses, cryptocurrencies have the ability to revolutionise them all.
In 2017, Australia’s government made cryptocurrencies and exchanges legal, and the country has seen rapid growth and progression in its implementation ever since. The government decided Bitcoin and other cryptocurrencies with similar traits would be considered and treated as property. Before this, cryptocurrencies in Australia had been subject to controversial double taxation.
The future regulation of cryptocurrencies in Australia has been established by a pattern of positive regulations currently in place. Under the ASIC guidelines, it is stated that the natural structure and growth of all tokens will determine the legality of cryptocurrencies under general consumer laws and the Corporations Act.
The crypto market down under
Australia’s cryptocurrency market may not be the biggest, especially compared to those in Europe and the US. However, it is growing, and it currently has the 14th largest BTC volume globally with a circulating supply of 17 million coins. At the time of writing, the conversation rate for Bitcoin to AUD is around A$5,527.37.
In 2018, the Australian Transaction Reports and Analysis Centre (AUSTRAC) announced it would be approving more cryptocurrency exchanges for use in the country. Businesses can apply and register with AUSTRAC to be able to operate an exchange, and there are now over 200 exchanges available.
All exchanges registered must comply with the rules and regulations of the country. They must also identify and verify users with AUSTRAC. All companies unable to comply with these regulations will be subject to criminal charges and financial penalties.
As blockchain technology continues to work its way into the mainstream, we have seen many global companies begin exploring the possibilities of blockchain. For instance, WWF Australia has already begun testing implementations of blockchain technology.
The test implementations are centred on using blockchain to track their respective supply chains. In doing so, WWF Australia is hoping to mitigate against the unethical sourcing of minerals and resources.
Since supply chains, particularly for global companies, require many steps across many countries, it can be difficult to ensure each step is met with precision.
However, with this type of technology, companies can track the entire process to ensure no wrongdoings occur.