Australian Government Takes Steps Toward Becoming A Bitcoin-Friendly Nation

Bitcoin has suffered severe tax penalties in several countries around the world as many politicians are unsure of how to regard the currency when it comes to tax laws. In Australia, the cryptocurrency was classed as a commodity and therefore was subject to repetitive tax penalties which made it difficult for bitcoin-based startups to afford their operations. However, this week the nation's Senate Economics References Committee

that bitcoin should be recognized instead as a currency, thus eliminating the "double taxing" problem.

Much like the UK's recent decision to embrace the growing digital currency trend, Australia's ruling on tax law is likely to draw in cryptocurrency entrepreneurs who are looking for an environment conducive to the industry's growth. By making taxes more manageable, Australia will likely become a home to the budding fintech sector.

While the amendment to Australia's tax law represents a major win for the cryptocurrency community, the committee stopped short of completely embracing bitcoin as a full fledged currency. The committee noted that regulation through the Reserve Bank of Australia was still a ways away, and noted that more investigation was needed before any further steps could be taken toward wide-scale regulation.

The committee also agreed to set up a task force that will be responsible for monitoring bitcoin transactions and evaluating the risks associated with the use of digital currencies. The task force is expected to continue investigating the cryptocurrency and eventually make recommendations about regulations that could reduce illegal transactions.