The Australian lawmakers are finally beginning to read the Bitcoin definitions correct.
In a recent public notice, Treasurer Scott Morrison proposed to empower new finance technologies like Bitcoin and blockchain through easy laws. The Australian government official announced that technologies such as these will be exempt from GST, thereby repealing the infamous ruling set last year.
“We will ensure access to concessional tax treatments for venture capital investments in FinTech firms, will take action to prevent the double taxation of digital currencies – we won’t be taxing digital currencies,” said Morrison while addressing media today.
In addition to the scrapping of GST Bill, the government also proposed to incubate FinTech startups through frictionless and refined regulatory frameworks. One of the most influential proposals to come out of this announcement is the amendments made into the crowdfunding bill. As Morrison confirmed, the government will increase the assets and turnover limit for startups to $25 million. It will further reduce the cooling-off period from 5 days to 2 days.
Morrison further confirmed that they will setting up a “Productive Commission” to understand how they could assist and improve the FinTech products with an aim to transform the nation’s economy. Just a week back, the government had collaborated with FinTech Australia, a FinTech lobby group headed by Westpac Banking Corp director and Stone & Chalk chairman Craig Dunn, to help disruptive finance startups breathe and grow at the same time.
The steps taken by the Australian government have paved more ways for Bitcoin to come and establish itself as the best innovation since internet. The digital currency, despite its marvelous technological talents over traditional banking setups, has been targeted by mainstream media and government for a limited number of “solvable” drawbacks. Recently, Venezuelan government had issued a public warning against the use of Bitcoin. After a dew days, they arrested two individuals for allegedly mining the digital currency.
Russia meanwhile has continued to claim its tough stand against Bitcoin, and has even proposed a maximum of seven year prison time for its users.