Regulation
Australian Tax Office Unveils Tighter Regulations for Crypto Exchanges: Report
In an unprecedented twist seen in the crypto landscape, the Australian Tax Office recently launched a process to obtain personal data and transaction details relating to up to 1.2 million bank accounts. cryptocurrency exchanges. The move, which aims to combat tax evasion nationwide, has caused a stir in the Australian crypto community.
ATO seeks to curb tax evasion amid growing crypto adoption
The ATO’s increased scrutiny of individuals avoiding tax amid growing adoption of cryptocurrencies reflects the global challenge of adapting to this new form of money. In an official statement released last month, the ATO proclaimed that the acquired data would offer substantial assistance in identifying traders who avoided reporting the exchange of crypto assets or when they sold them for currency and used them to pay for goods or services.
In context, the ability to purchase crypto by providing false information about oneself potentially makes it more attractive to those looking to avoid tax, the ATO reasons. This can lead to a lack of understanding of tax obligations, on which the regulator seeks to acquire the colossal amount of data mentioned above.
Read also: Ethereum remains the “basket” of this bullish cycle, will the price of ETH fall further?
What’s the scoop?
In particular, the ATO aims to acquire personal data and transactional details including date of birth, telephone numbers, social media accounts, bank accounts, wallet addresses and type of coin held. This sets other global regulators apart because the country treats cryptocurrencies as assets for tax purposes and not as foreign currencies.
Additionally, the move could also lead to a paradigm shift in the Australian crypto landscape, as investors could now be required to pay capital gains taxes on profits made from sales. cryptocurrency or crypto trading. Although an official announcement regarding the imposition of this measure has not yet been revealed, the ATO’s intentions are clear.
Read also: Will the price of Bitcoin remain stable until August? Expert analysis