Australia is Rapidly Developing its Blockchain Industry
The adoption of cryptocurrencies is not measured by how many people use them on a daily basis. By today’s standards, we can say that almost a whole nation’s worth of investors is involved in transacting millions if not billions of dollars worth of crypto nearly every day, that already classifies as crypto adoption, right?
Well, technically no. You see, most experts believe that cryptocurrency is adapted to a country’s or world’s economy when central governments have little to nothing to do with the technology. This means very light regulations on what is allowed and what isn’t, as well as a small taxing policy should they see cryptos as financial assets, which they essentially are.
One such country is Australia, which has changed its view towards the blockchain numerous times over the course of the past 5 years or so. The country had a very severe lack of regulation before 2017, but quite a strict taxing law right after the “legalization” of cryptos.
Luckily though, the storm has passed and the local tax agency regards cryptos as property and therefore imposes only a small percentage in terms of capital gain tax, which is quite advantageous for the local users.
Because of this acknowledgment, the popularity of cryptocurrencies has been rapidly increasing in Australia. Pair the regulation and taxes up with the new cash transaction laws, and we get a government that is looking further into the future and hoping to develop an up-to-date digital economy.
This has caused many more Aussies to use cryptocurrencies for their daily transactions. Things like online services, goods, and various other transactions are being undertaken through cryptos, because of their speed efficiency as well as smaller costs when compared to traditional methods such as Wire transfers or credit/card payments.
But this doesn’t mean that these funds are being spent or transacted to industries or sectors the government wants in particular. For example, a crypto payment to an online casino Australia is trying to limit as much as possible is definitely not the priority for the government.
However, the value that Aussie players are able to get through these transactions simply cannot be ignored. The anonymity from banks, no fees, instant transactions and overall better management of their habits are one of many advantages that people find in cryptos.
It is unlikely that cryptos for casinos will be banned anytime soon, but should their volume increase to overwhelming numbers, it could be “artificially” deflated a bit.
This will not stop the development
Regardless of how many cryptos are funneled into Australia’s gaming sector, the government will still not care too much, as long as they will receive the due payments on both corporate and capital gain taxes.
Furthermore, this can be “corrected” through a local crypto project. For example, two local banks, Westpac and ANZ have begun allowing their customers to buy cryptos with credit cards and even store them on a local hot wallet.
It could turn into law that players can only use the banks’ hot wallets for “unfriendly” transactions.
As long as Australia is able to remain on an even playing field in terms of blockchain with Japan, Hong Kong, Singapore, and South Korea, countries that are relatively close and much more developed in the technology, it will have the opportunity to be the first “truly supportive” nation for cryptos, and therefore drive millions if not billions worth in FDI.