Regulation of cryptocurrencies in Australia

Cryptocurrency in Australia is recognized as a financial instrument and is allowed to trade on the stock exchange. At the same time, it is not equated to fiat (symbolic, paper, credit, not backed by gold) money, and crypto transactions are subject to capital gains tax (CGT) and income tax.

Taxation 

  • Transactions for personal purposes are not taxed if a consumer product or service is purchased for cryptocurrency, while the size of the transaction cannot exceed A $ 10 thousand.
  • Exchange for another crypto or fiat, sale or gift is subject to CGT. 
  • The amount of tax depends on the nature and use of the asset. The Australian Taxation Office (ATO) learns the nature of the asset, purchase intent, holding period, frequency and volume of similar transactions, reasons for its disposal through the Know Your Customer (KYC) verification process. 

More than half of all crypto ATMs in Australia are concentrated in the two largest cities of the country - Sydney and Melbourne, there are about 50 of them in total.

For 2022, it is planned to modernize the regulatory framework related to the supervision and financial monitoring of cryptocurrency; what will change:

  • The Australian government will introduce a plan for licensing cryptocurrency exchanges and a mechanism for the safe storage of crypto;
  • ATO will develop a clearer system for taxing digital assets.
  • To protect the crypto assets of Australians, cyber security standards and principles for verifying the transparency of cryptocurrency companies will be established.
  • The general framework and content of the training course for specialists working with crypto and blockchain will appear.

The main obstacles to the inflow of investments into the crypto sphere of Australia are uncertainties in legislation and progressive taxation: with an income of $180,000, 45% of net profit will have to be paid.

Additional Information

More than 800,000 Australians – about 3% of the population – owned virtual assets in 2021, according to Treasurer Josh Frydenberg. Bitcoin topped the ranking of the most popular cryptocurrencies among Australians, the top three also included Ethereum and Dogecoin.

To conduct activities in the form of a crypto exchange, crypto exchange, payment system, you must register with the Australian Transaction Reporting and Analysis Center (AUSTRAC) and obtain a financial services license (AFSL). 

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CoinShark is not responsible for the content, accuracy, quality, advertising, products or any other content posted on the site. This article is for informational purposes, prepared on the basis of materials and information from open sources . Cryptocurrency is a high-risk asset, investing in it can lead to losses. Readers should do their own research before taking any action.

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