Fintech Australia removes GST from Bitcoin transactions

Although we all know and many people are clear about how financial institutions should make changes, government officials are not very clear about this.

The concept of Bitcoin and Fintech seems to confuse many politicians around the world. As far as we know, their natural reaction is to overregulate these industries and protect the existing financial ecosystem. However, this is about to change. Fintech Australia has announced that it will help the federal government expand the current financial ecosystem while allowing Fintech startups to breathe a sigh of relief and grow.

Collaboration between Fintech Australia and the government

While we all know and many people understand how financial institutions should change, government officials are less clear on this front. Some have seen the benefits of Fintech and Bitcoin, while others have raised objections at every opportunity. Only collaboration can create a healthy and innovative ecosystem, and Bitcoin and Fintech will play an important role in this process.

To help get the ball rolling, a new group has been formed: Fintech Australia, whose members have a vested interest in bringing innovation to Australia’s financial institutions. The group includes bitcoin companies Coinjar, Clover, MoneyBrilliant and SelfWealth, among others.

Collaboration is a key factor in allowing the Fintech industry to grow in Australia. Fintech Australia has made a statement to the Federal Government. Building a vibrant ecosystem is important, and missing the opportunity for a Fintech boom could result in lost jobs and tax revenue.

After an hour-long meeting with Australian Prime Minister Malcolm Turnbull and other government officials, it was clear that the government should leverage its natural competitive advantage in the financial services industry and get involved. Establishing the right regulatory guidance for the Fintech industry will help Australia become an innovation hub in the financial sector.

Meanwhile, fintech and bitcoin startups are unsure how much breathing room the Australian government will give them, and they are also being asked to address the issue of not being able to access customer data collected by banks and traditional financial institutions.

There is particular interest in how Australia intends to regulate robo-advisors. These automated financial advisors are a major focus of the financial industry, but without the right open data APIs, these projects cannot offer a full service. Here too, collaboration is needed, as banks and Fintech startups must work together to create a more comprehensive ecosystem.

This is a very different situation than the recent ACCC ruling

These discussions about building a more open financial ecosystem come at an interesting time, given the recent ACCC ruling that Australian banks are not banding together to boycott bitcoin competitors. After many Australian bitcoin startups found their bank accounts closed without clear reasons, the ACCC launched an investigation, but nothing came of it.

It remains to be seen whether Fintech Australia’s efforts will have a positive or negative impact on the Bitcoin ecosystem. The announcement calls for better access to non-AUD-based settlement infrastructure. In addition, Fintech Australia wants to remove the general sales tax (GST) on Bitcoin transactions, thereby promoting the development of digital currency facilities.

Finally, although digital currency has received less attention than other work, it is still part of the Fintech industry. Regardless, these discussions undoubtedly set a precedent for future innovation.

Original article: http://www.newsbtc.com/2016/02/24/fintech-australia-paving-way-removing-gst-bitcoin-transactions/
By JP Buntinx
Compiled by: Kyle
Source (translation): 8btc Information (http://www.8btc.com/fintech-australia-bitcoin)