Cryptocurrencies and digital assets are constantly evolving. There is a degree of uncertainty regarding the features they may have in the future, or whether they will be adopted, or disallowed, by some or all jurisdictions, globally. We consider it important for the draft legislation to provide fundamental, future-proofed principles that can give taxpayers a sufficient degree of certainty.

To do this the Government needs to:

• make a clear and holistic policy statement outlining its intent as to whether Australia supports the use and increased adoption of cryptocurrencies and other digital assets
• where possible, use wording that is principles-based rather than prescriptive 
• every 3 years have a Parliamentary review of the definition of a ‘digital currency’ (or other appropriate definitions that may be recommended by the Board of Taxation (Board) review and Treasury token mapping exercise) 
• allow the Commissioner the discretion to include (in addition to exclude) cryptocurrencies, or features of future digital assets, to fall within the scope of a ‘foreign currency.