Bitrabo Editorial
To address possible tax discrepancies, the Australian Taxation Office (ATO) is focusing on around 1.2 million accounts related to cryptocurrencies.
The Australian government is intensifying efforts to ensure tax compliance among users amidst the increasing popularity of digital currencies.
ATO’s Examination of Crypto Transactions
The ATO is closely monitoring the 1.2 million crypto accounts to detect any inconsistencies between reported and actual transactions. This involves analyzing personal information and transaction details from various crypto exchanges.
The primary objective is to uncover unreported transactions, whether involving exchanges or used for purchasing goods and services.
In Australia, cryptocurrencies are considered assets, not foreign currency, subjecting profits from digital asset sales to capital gains tax.
Over 800,000 Australian taxpayers participated in digital asset transactions in recent years, with a notable increase in activity observed in 2021.
This surge in crypto activity has led the Australian government to adopt a more structured regulatory approach, though less strict compared to other countries such as the United States.
Regulation of Cryptocurrency in Australia
While Australia has introduced regulations mandating cryptocurrency exchanges to acquire financial services licenses, the country remains interested in the digital currency sector.
Major financial players like Van Eck Associates Corp. and BetaShares Holdings Pty are preparing to launch spot exchange-traded funds (ETFs), with the Australian Securities Exchange (ASX) likely to approve these offerings soon.
ASX Ltd., a significant player in equity trading in Australia, is expected to greenlight the first spot Bitcoin ETFs by 2025, according to reports by Bitrabo.
The introduction of spot Bitcoin ETFs in Australia will have a significant impact on the nation’s $2.3 trillion pension market.
Approximately 25% of retirement assets in Australia are managed through self-managed superannuation programs, allowing individuals to choose their investments, which are anticipated to be major purchasers of the new spot-crypto funds.
VanEck Australia’s Jamie Hannah highlighted the expansive market created by self-managed super funds, brokers, financial advisers, and platform investors that will support the growth of ETFs.
This move signifies a positive outlook for digital asset investments in Australia’s financial realm.
Featured image from Unsplash Chart from TradingView