07 May

The Australian Taxation Office (ATO) has recently initiated efforts to obtain personal data and transaction information from cryptocurrency exchanges, potentially encompassing around 1.2 million accounts. This move aims to strengthen enforcement against individuals who might be neglecting their tax obligations amidst the growing popularity of digital tokens.

As per a notice issued by the ATO last month, the objective of acquiring this data is to identify traders who have not disclosed their crypto exchanges or the utilization of digital currency for purchases of goods and services. The ATO acknowledges the complex nature of the crypto industry, which can contribute to a genuine lack of understanding regarding tax responsibilities.

The ATO has expressed concerns about individuals exploiting the anonymity of cryptocurrency transactions to evade tax obligations. It has highlighted that the ease of acquiring crypto assets with false information could appeal to those seeking to bypass tax laws.

The information sought includes personal details like date of birth, phone numbers, and social media accounts, along with transaction specifics such as bank accounts, wallet addresses, and the type of cryptocurrency involved.

In Australia, digital currencies are regarded as assets for tax purposes rather than foreign currency. This means that investors are subject to capital gains tax on profits from selling crypto assets and on digital asset trades.

The popularity of crypto assets in Australia has been steadily increasing. A treasury report from 2022 indicated that over 800,000 Australian taxpayers had participated in digital asset transactions in the preceding three years, with a significant 63% increase observed in 2021.

Since September 2022, Australia has been steadily increasing its number of cryptocurrency ATMs, after installing very few new machines for years. Currently, the country boasts an impressive 1,007 of these ATMs, reflecting a substantial expansion in the accessibility of digital assets.

May 2024, Cryptoniteuae

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