- The government of Australia announced that a legislation to enshrine the treatment of crypto as assets will be introduced soon.
- Crypto traders in Australia would pay capital gains tax on profit from the sale of digital assets through exchanges.
- The Australian Securities and Investments Commission (ASIC) has tightened the noose on misleading promotional advertisements for crypto assets.
Australia announces that profits from selling cryptocurrencies will be taxed as capital gains and not foreign currencies. The crypto community is Australia is disappointed with this treatment of digital assets as this increases their tax burden.
Also read: Shiba Inu price: SHIB prepares to eat one zero after burn rate jumps up 1,494%
Australian crypto industry disappointed with crypto tax decision
On October 26, crypto traders in Australia expressed their disappointment with the government’s decision to continue treating cryptocurrencies as digital assets for tax purposes, and not foreign currency.
On Tuesday the Australian government said in a budget announcement that legislation on enshrining the treatment of digital currencies as assets will be introduced soon. This means investors would pay capital gains tax on profit from selling cryptocurrencies on exchanges where they trade digital assets.
The Australian Securities and Investments Commission (ASIC) recently sued BPS Financial for misleading crypto advertisements of the asset Qoin. The ASIC said that the advertisements were,
false, misleading or deceptive representations for other crypto assets or fiat currency (such as Australian dollars) through independent exchanges.
ASIC’s argument was that it wasn’t possible to exchange Qoin on independent cryptocurrency exchanges and its promoter gave the impression that its network was growing even as the number of merchants fell.
Since El Salvador’s acceptance of Bitcoin as legal tender the Australian government has been keen on regulating cryptocurrencies and identifying how to tax the asset. The budget announcement made it clear that profits from the sale of cryptocurrencies would be taxed as capital gains.
Australia has taken a different approach towards government-issued digital currency, or central bank digital currency (CBDC) and it is treated as foreign currency. With the ASIC’s case against BPS Financial, Australia has taken its stand on crypto taxation and rules for crypto advertisements.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ripple's XRP set sights on $1.100 following renewed investor interest
Ripple's XRP rallied nearly 20% on Tuesday, defying the correction seen in Bitcoin and Ethereum as investors seem to be flocking toward the remittance-based token.
Dogecoin Price Prediction: Could DOGE ETF spark new all-time high after 130% rise?
Dogecoin rose over 15% on Tuesday as traders anticipate a price move toward the $1 threshold following Bloomberg analyst Eric Balchunas's post regarding a DOGE exchange-traded fund.
Hedera's HBAR rallies nearly 20% as Canary Capital files for HBAR ETF
Hedera's HBAR is up nearly 20% on Tuesday as Canary Capital submitted an S-1 registration to the US Securities & Exchange Commission for an HBAR exchange-traded fund.
Ethereum Price Forecast: ETH down despite hype from Beam Chain unveil
Ethereum is down 1% on Tuesday despite developer Justin Drake proposing the Beam Chain, a new consensus layer that aims to ship a series of changes that will fast-track the Main chain's roadmap to faster block times and quantum resistance.
Bitcoin: Further upside likely after hitting new all-time high
Bitcoin hit a fresh high of $76,849 on Thursday as crypto-friendly candidate Donald Trump won the US presidential election. Institutional demand returned with the highest single-day inflow on Thursday since the ETFs’ launch in January.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.