A Senate committee will examine the "relative sophistication" of Australia's regulations of cryptocurrencies and digital assets, compared to approaches taken in similar jurisdictions, among a raft of topics involving technology and finance.
This is to be the third and final phase of the Senate Select Committee on Australia as a Technology and Financial Centre, chaired by Senator Andrew Bragg and co-chaired by Senator Marielle Smith.
In its latest call for submissions, the committee said it will be looking at how blockchain tech, and digital asset technology in particular, could promote Australian investment and boost jobs.
Consequently, the committee is keen to know what type of policy provision and legal certainty is needed to drive private investment into Australian digital assets, rather than the investment occurring offshore.
Approaches taken by policymakers – especially those in comparable jurisdictions such as Canada, Singapore, the United Kingdom and the European Union – will be examined.
Other topics to be examined in this phase of the committee's work will cover:
• "debanking" of Australian fintechs – that is, the alleged reluctance by major banks to allow potential competitors to access transaction accounts;
• the policy environment for neobanks in Australia, in the light of recent developments such as closure of Xinja Bank and NAB's purchase of 86,400;
• further areas where corporate law is holding back new investment in Australia and how these can best be addressed; and
• options to replace the Offshore Banking Unit tax regime – including the viability of an Incremental Business Activity Rate, as set out in the Low Report (January 2021) as an alternative to the OBU, which would allow substantial businesses relocating in Australia to receive a tax rebate for up to seven years.
The deadline for submissions to the inquiry is 30 June 2021.
The committee will then deliver a final report, with additional recommendations, in October 2021.