Andrew Bragg, the Australian Liberal Senator, came up with a stunning legislative proposal at the Australian Blockchain Week Conference. This legislative proposal, according to the Senator, will lay down the groundwork for a new Digital Asset ecosystem.
The recommended Digital Services Act (DSA) legislative proposal will address and reform debunking, custody, crypto marketing license, taxes and decentralized autonomous organizations (DAOs). While addressing in the conference, Senator Bragg stated that the act would protect the crypto investors and cryptocurrency users against hostile operators.
The Digital Services Act (DSA) is primarily guided by four main pillars. Senator, in his speech, has outlined these pillars and explained them to the participants of the conference. Technologically the Digital Services Act (DSA) is neutral, and the acts also have flexible and broad principles. The acts will use government resources and will be regulated by a Minister instead of a bureaucratic agency. According to his view, these steps will make the country ready to take a broader role in the booming crypto industry.
The Senator also challenged various branches of government to take DAOs seriously because, according to the Senator, DAOs possess an existential threat to the taxes applied by the government of the country. If we take a direct look at the report published by the Parliament of Australia, tax accounts of the country are the second-largest revenue source for the government of the country after income tax, but the DAOs are not eligible for taxes as the companies are.
Senator Bragg further stated that the reliance of the government on companies’ taxes is unsustainable due to the fact that most of the companies can turn to DAO. But with the help of DSA, the government can create a certain framework and set a standard for creating DAOs while keeping their core principles intact and untouched.
The main aspects of the standards would be to have accessibility to audit and disclosure services from the DAOs, which will assist them in differentiating between wholesale and retail organizations. Senator Bragg has requested the treasure to approach the issue while keeping the field of DAOs intact and making ways for the organizations.
Michael Harris, the head of the corporate branch of the Australian crypto exchange Swyftx is in favor of this bill because he wants the government to establish higher standards for the Australian crypto industry.
According to him, most of the Australian crypto exchange platforms have nothing to fear from the higher standards due to the reason these domestic exchange platforms take their customers very seriously. According to a survey from the pollster Finder, between October to December, 22.9 percent of Australians were in possession of crypto assets.