Warning: unlink(/tmp/jnewslibrary-aMNwug.tmp): No such file or directory in /home/customer/www/coinparative.com/public_html/wp-admin/includes/class-wp-filesystem-ftpext.php on line 142
Australian Senator: DAOs an 'Existential Threat' to Tax Base | Coinparative
Coinparative

  • News
    • Crypto News
    • Blockchain News
    • Altcoin News
    • Press Release
    • NFT News
    • Metaverse
    • Web3.0 News
    • Trending
  • Insights
    • Explainer
    • Research
  • Guides
  • Market
    • Market analysis
    • Market News
    • Reviews
    • Price Index
  • Videos 🚀
No Result
View All Result
  • About Us
  • Contact
  • jeet-detector-bot
    JDB(JDB)
    $0.00-0.61%
  • bitcoin
    Bitcoin(BTC)
    $0.00-2.83%
  • ethereum
    Ethereum(ETH)
    $0.00-3.03%
  • usdex-stablecoin
    USDEX(USDEX)
    $0.00-0.53%
  • tether
    Tether(USDT)
    $0.00-0.05%
  • binancecoin
    BNB(BNB)
    $0.00-3.18%
  • usd-coin
    USD Coin(USDC)
    $0.00-0.11%
  • ripple
    XRP(XRP)
    $0.00-2.13%
  • binance-usd
    Binance USD(BUSD)
    $0.00-0.08%
  • cardano
    Cardano(ADA)
    $0.00-3.07%
  • dogecoin
    Dogecoin(DOGE)
    $0.00-4.61%
  • matic-network
    Polygon(MATIC)
    $0.00-1.15%
  • okb
    OKB(OKB)
    $0.00-6.20%
  • solana
    Solana(SOL)
    $0.00-4.26%
  • staked-ether
    Lido Staked Ether(STETH)
    $0.00-3.01%
  • polkadot
    Polkadot(DOT)
    $0.00-3.49%
  • shiba-inu
    Shiba Inu(SHIB)
    $0.00-6.47%
  • litecoin
    Litecoin(LTC)
    $0.00-4.59%
  • avalanche-2
    Avalanche(AVAX)
    $0.00-5.33%
  • tron
    TRON(TRX)
    $0.00-1.51%
View All
Coinparative
Home News

Australian Senator: DAOs an ‘Existential Threat’ to Tax Base

March 21, 2022
in News
250 2
A A
0
Australian Senator: DAOs an ‘Existential Threat’ to Tax Base
Share on FacebookShare on Twitter

Decentralized autonomous organizations (DAOs) pose an “existential threat to the tax base” since they are recognized as partnerships and as such are not liable to company tax, according to Australian Senator Andrew Bragg.

Speaking at the Australia Blockchain Week conference on Monday, Bragg announced a comprehensive piece of crypto legislation called the Digital Services Act (DSA).

In it, the senator highlighted DAOs, among other sectors, adding that they “must be recognized and regulated as a matter of urgency.”

Explaining the reasons behind the proposal, Senator Bragg said that Australia’s “reliance on company tax is unsustainable” given that company tax accounted for 17.1% of total Commonwealth government revenue in 2020-21.

A DAO is essentially an online community that leverages smart contracts to organize some of its governance structure. These organizations often make use of a native cryptocurrency to incentivize their members and govern decision-making by the community.

Bragg establishes ‘minimum’ DAO standards

Senator Bragg also stressed that it is necessary to recognize “the fact that DAOs are self-regulating and transparent, with an in-built system for governance.”

The legal recognition of DAOs also means that there’s a set of “minimum standards” that should be legislated.

These standards, if developed, would provide audit, assurance, and disclosure services from DAOs, giving consumers the ability to distinguish between retail and wholesale organizations.

The Australian senator called for the Treasury to address those issues while also “leaving the field open for DAOs to continue to live up to their name.”

He added that “in ten or twenty years time we may well be talking about the inverse situation: applying the rules for cryptocurrency to traditional finance.”

The proposed DSA legislative package also calls for reforms in such areas as crypto market licensing and custody, while also ensuring that countries like Russia don’t use crypto to skirt financial sanctions.

By the end of 2022, the Australian government is expected to receive a report on digital asset taxation and undertake a token mapping exercise.

The government will also examine the potential of DAOs and how they can be incorporated into existing legal and financial frameworks.

Australia and crypto

Australia made a significant step to adopting a comprehensive regulatory framework for the digital assets space last October.

At that time, the Senate’s Select Committee on Australia as a Technology and Financial Centre (ATFC) presented its final report outlining its recommendations for a clear regulatory framework for the country’s crypto sector.

The report included 12 recommendations, including the establishment of legal structures to recognize DAOs.

Source: Decrypt

Share196Tweet123Share34Pin44ShareSend

Related Articles

FTX Bankruptcy Judge Allows Company to Subpoena Founder Bankman-Fried, Other ‘Insiders’
News

FTX Bankruptcy Judge Allows Company to Subpoena Founder Bankman-Fried, Other ‘Insiders’

February 9, 2023
1.4k
Ethereum And Bitcoin Offer Stability, Orbeon Protocol Offers High Returns
News

Ethereum And Bitcoin Offer Stability, Orbeon Protocol Offers High Returns

February 9, 2023
1.4k
US banking giant BNY Mellon says digital assets are ‘here to stay’
News

US banking giant BNY Mellon says digital assets are ‘here to stay’

February 9, 2023
1.4k
Deutsche Bank in Talks to Invest in 2 German Crypto Firms: Bloomberg
News

Deutsche Bank in Talks to Invest in 2 German Crypto Firms: Bloomberg

February 9, 2023
1.4k
Indian Crypto Exchange Wazirx Calls Binance’s Allegations ‘False and Unsubstantiated’ — Seeks Recourse
News

Indian Crypto Exchange Wazirx Calls Binance’s Allegations ‘False and Unsubstantiated’ — Seeks Recourse

February 9, 2023
1.4k
Coinbase CEO says SEC wants to ban retail staking
Blockchain News

Coinbase CEO says SEC wants to ban retail staking

February 9, 2023
1.4k
Load More

Discussion about this post

Coinparative

2022 © All Rights Reserved.

Coinparative specializes in the digital News and research on cryptocurrency, Digital Assets and Blockchain

  • Advertise
  • Privacy Policy
  • Terms
  • About Us
  • Contact

Follow Us

No Result
View All Result
  • News
    • Crypto News
    • Blockchain News
    • Altcoin News
    • Press Release
    • NFT News
    • Metaverse
    • Web3.0 News
    • Trending
  • Insights
    • Explainer
    • Research
  • Guides
  • Market
    • Market analysis
    • Market News
    • Reviews
    • Price Index
  • Videos 🚀

2022 © All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
DON’T MISS OUT!
Subscribe To Newsletter
Be the first to get latest updates and exclusive content straight to your email inbox.
Stay Updated
Give it a try, you can unsubscribe anytime.
close-link
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.

Warning: unlink(/tmp/jnewsfirstload-2zSrTZ.tmp): No such file or directory in /home/customer/www/coinparative.com/public_html/wp-admin/includes/class-wp-filesystem-ftpext.php on line 142