Australia Looks To Regulate Crypto; Ethereum Hits All-time High
A red letter day for Australia’s crypto industry, what’s happening down under?
Welcome to The Daily Forkast October 22nd, 2021. I’m Angie Lau, Editor-in-Chief of Forkast.News, covering all things blockchain.
While Australia’s long awaited Senate report into fintech regulation has been finally published, it makes 12 recommendations which aim to establish a clear framework for digital assets in the country.
We’re going to take a look at how the report could shape the future of crypto in Australia and a whole lot more coming up.
Let’s get you up to speed from Asia to the world.
First up, Australia’s Senate Select Committee has delivered its third and final report on Australia as a financial and technology center.
The final phase took evidence from the industry, from academics and regulators to consider the regulation of digital assets in the country and investigated the practice of de-banking affecting those in the industry.
And you heard those stories right here on Forkast.
Well, our Forkast.News Lachlan Keller has been covering this story from the very beginning. He now has details on reaction to the recommendations the committee made from Melbourne, Australia.
Among the recommendations, establishment of a licensing regime for digital currency exchanges, a framework for characterizing digital asset tokens and ensuring capital gains tax applies only to transactions that result in a clearly definable capital gain or loss.
One expert told Forkast.News he’s encouraged those recommendations aren’t too prescriptive. However:.
“What I’m a little bit nervous about, though, is the sense of urgency around a licensing regime and a custody regime for crypto. When we know that there is no fit for purpose regime that we can see in the existing regulatory environment for crypto.”
Miller says the reason the crypto industry has penetrated the Australian market so deeply is because the protection offered by current anti-money laundering and counter-terrorism finance regulation in Australia already creates a safe environment.
However, he believes clarity and guidance around specific tokens and DAOs would be helpful.
The report also called for a review into banking practices after industry participants highlighted issues with their relationships with major Australian banks.
Miller says those banks need to play catch up.
“What we’re seeing overseas is mass adoption. We’re seeing every major bank offering crypto to their clients. So, you know, the the Australian banking sector here, I think, is missing a trick.”
Those banks playing catch up could prove welcome news for players like former Bitcoin trader Allan Flynn, whose fight against the de-banking we have been following.
And in a move that may please those concerned about the environmental impact of crypto mining. One other recommendation from the report was a 10% tax break for miners who use purely renewable energy.
For Forkast.News, I’m Lachlan Keller in Melbourne, Australia.
Up next, ever walk by a Bitcoin ATM in Hong Kong? Well, if you haven’t yet, chances are you’re going to soon.
There are already a 134 Bitcoin ATMs in Hong Kong, with a whole lot more planned. So if you ever go to visit, you might just stumble into one stationed at some of the busiest places in the city.
They offer convenient portal to the world of cryptocurrencies, but is there more to it than accessibility?
Forkast.News Danny Park reports.
A Bitcoin ATM is a physical kiosk that people can use to easily buy crypto with cash after depositing cash into the machine.
The buyer scans a QR code that shoots the crypto into their digital wallet. CoinUnited IO the operator of the largest Bitcoin ATM network in Hong Kong.
That’s around 50 machines, and it has more than 100 across Asia.
As most people have experience of using an ATM. A Bitcoin machine seems an easy way to start one’s first crypto purchase.
Angus Lo of CoinUnited told Forkast.News he’s seeing a new pool of investors using them.
“I’m quite surprised there’s an age range from maybe 40 to even 60. There’s a people within this age range. They actually come in and inquire about cryptocurrency and end up the actual deposit and buy cryptocurrency, and I’m quite surprised. There’s quite a lot of, uh, open minded people to accept new technology within this age group.”
Apart from being more accessible to a wider audience, users always hold full property of their cryptocurrencies while crypto exchanges have custody of the deposited amount of cash or crypto.
CoinUnited director Joe Chan says people’s curiosity over the Bitcoin ATMs will lead more to try to understand what blockchain really is and to further that the company has launched CoinUnited IOR Academy to educate people on blockchain, crypto and NFTs.
For Forkast.News, I’m Danny Park in Hong Kong.
And finally, today, Ethereum has followed Bitcoin and hit an all time high.
The second largest cryptocurrency by market value briefly touched a new all time high of US$4,361 Thursday night Asia time, that according to data from CoinGecko.
That’s just a small increase over its previous all time high of US$4,356 which it hit back in May.
However, it didn’t stick. We saw a quick pullback, with a price dropping 3.6% within an hour. So what are the top market watchers think?
Well, Joah Santos of crypto exchange Aldrin told Forkast.News he wasn’t surprised by the all time high, saying quote;
“This story has repeated itself so often. The only variable nowadays is the length of time of each cycle. The way things are pumping on the layer ones, I’m expecting a massive run on the small caps in those ecosystems”, end quote.
And of course, we at Forkast.News, we’ll be keeping a close watch on all of this for you.
And that’s The Daily Forkast from our vantage point right here in Asia.
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And please do visit Forkast.News for more. I’m Editor-in-Chief Angie Lau. Until the next time.