Australia’s AUSTRAC, the country’s financial intelligence and watchdog plans on monitoring bitcoin exchanges following a new legislation which has been passed in the country. With this Legislation comes with a regulation which obligates bitcoin exchanges to register at the digital currency exchange register which is being maintained by the Australian Transaction and Reporting Analysis Centre (AUSTRAC).
What does bitcoin regulation mean for the crypto industry and the Australian government?
The Australian government passing this regulation is trying to crack down on money laundering something which could easily be done with cryptocurrencies given the anonymity surrounding cryptocurrencies. This will mandate bitcoin exchanges to identify users so as to crack down on illegal activities some of which include the financing of terrorism. They will also have to report any suspicious transactions, deposits of fiat which are over AU$10,000 and international transactions.
Following this development, Paul McKenzie of ACX.io was quoted yielding support to the latest move “This will stamp out fraud and allow innovation to flourish; a bond move that will benefit Australians for years to come.
This will also remove double taxation of bitcoin and cryptocurrencies. Currently, Australians are being taxed twice.
“If you pay for a cup of coffee, you will pay 40c GST for the coffee, and 40c again for the bitcoin you used to pay for the coffee” Daniel Alexiu CEO of Living Room of Satoshi an Australian start up.
The Australian government had promised in 2016 to address this problem and they kept to their word and at the start of 2017, they started addressing the issue. The chair of Australians house of representative’s standings committee on tax and revenue, Kevin Hogan was quoted saying “If these cryptocurrencies emerge in greater numbers, certainly the government will need to adapt to some of that to make sure tax payment system is included in that”.
What impact do you think these developments mean for the Australian Crypto space? do you think an elimination of double taxation will lead to greater adoption? Do you think regulation of Cryptocurrencies is the way forward? Let us know in the comment section below.