The Australian Taxation Office (ATO) is attempting to identify tax discrepancies among approximately 1.2 million cryptocurrency-related accounts.
This initiative by the Australian government aims to crack down on potential tax evasion amid growing interest in digital tokens.
The ATO is scrutinising these accounts to uncover any discrepancies between reported and actual transactions. This includes examining personal data and detailed records from cryptocurrency exchanges.
In Australia, cryptocurrencies are categorised as assets, not foreign currency. This classification means that profits from their sale are subject to capital gains tax.
Reports suggest that over 800,000 Australian taxpayers have engaged in digital asset transactions in the last three years.
This significant surge in the crypto industry has prompted Australia to adopt a more structured regulatory approach, which, while comprehensive, is less stringent than the United States.
In parallel, key financial players Van Eck Associates Corp. and BetaShares Holdings Pty are preparing to introduce spot exchange-traded funds (ETFs), with the Australian Securities Exchange (ASX) likely to approve these new offerings soon.
ASX Ltd., which handles roughly 80% of all equity trading in Australia, is also expected to approve the first spot Bitcoin ETFs by 2025.
The introduction of spot Bitcoin ETFs in Australia is expected to have a significant impact on the country’s $2.3 trillion pension market.
Approximately 25% of Australia’s retirement assets are managed through self-managed superannuation programs, enabling individuals to choose their investments. These programs are anticipated to be major purchasers of the new spot-crypto funds.