Crypto regulation could prevent brain drain and scams | The Business | ABC News
Her business is registered with the financial crimes regulator oztrack, but shes been denied services by 91 banks. I originally opened a bank account with commonwealth bank. It was shut down around six months later and since then its been a domino effect of account closures. Liberal senator andrew bragg says bitcoin babes experience is not an isolated case and that banks are using a regulatory gap to justify banning crypto startups. His senate inquiry is looking at ways to police, cryptocurrencies and digital assets. We need to be a clever country and we need to make sure that we capture the benefits of digital assets. There are 400 digital currency exchanges in australia around one in six of us own. Cryptocurrency worth eight billion dollars in the first half of this year, more than 25 million dollars was lost in bitcoin scams thats compared to almost 18 million in all of 2020.. Cryptocurrency is not regulated. So at the moment people are purchasing cryptocurrency but theyre doing that without any kind of consumer protection. The fintech firm. This investor works for, wants crypto deposits with accredited platforms to be protected like bank deposits. What ive found is, as crypto is becoming more everyday. More everyday people are looking to invest in it. Researchers in this space want laws to be changed to allow investors to get financial advice and are calling for a public register of crypto businesses. Consumers need more tools at their disposal in order to be able to do due diligence.
At the same time, the industry wants tax concessions and is warning against laws that stifle innovation. If australia doesnt update its tax and its corporate rules to take into account the massive innovation thats occurred in the cryptocurrency space, it risks being left behind globally. Cryptocurrency is already going mainstream. El salvadors adoption of bitcoin as a legal tender, has been overshadowed by protests against the use of the digital currency, but analysts say australia should look to the licensing and tax rules that are in place in singapore, canada and the uk weve picked the best digital currencies. Tokens and stable coins, like many others, australian startup coinjar, has shifted its headquarters overseas everyones playing catch up, but i i do think a more concerted push to say hey. This is an industry we want to embrace. Unsurprisingly, banks are skeptical about cryptocurrency, but while theyve been accused of anti competitive behavior, they point to anti money laundering and counter terrorism. Financing law risks, but after pays deal with u.s tech giant square could soon see bitcoin become a widely accepted form of payment in australia. The reserve bank is also looking at developing a digital currency for michaela jurick. Her banking nightmare continues. She has a personal account with a minor financial institution which often blocks her cash withdrawals from other banks. Banks are private entities. No one can force them to do business with me or anyone for that matter.