Cryoto Currency

By CoinEdition, Australian Budget Lists Cryptocurrencies As Asset Class


Australian Budget Lists Cryptocurrencies in Asset Class
  • The Australian budget has crypto as an asset type.
  • Capital gains tax will now apply for crypto trades.
  • Regulators continue pushing for the eAUD CBDC.

Cryptos like will no more be considered a currency for tax purposes under a new provision in federal budget. The Australian government clarified that cryptocurrencies will continue being taxed as an asset and not a foreign currency in its 2022 budget.

This means that digital currency holders who sell or trade it on an exchange will be subject to capital gains taxes on their profits. This law will retroactively apply tax returns starting on July 1, 2021.

The budget is noted:

This preserves the current tax treatment for digital currencies, including capital gains tax treatment, if they are used as an investment.

However, the budget papers clearly state that any digital money produced or deposited by the government would continue being subject to the same tax as foreign currency.

The Internal Revenue Service estimates that more than one million taxpayers used some aspect of cryptocurrency ecosystem since 2018. To investigate the potential uses of digital money among Australian consumers and companies, the Reserve Bank of Australia is also running a “ring-fenced” pilot program.

Mitchell Travers, a former cryptocurrency exchange operator and blockchain expert, expressed confusion about the budget change. He claimed it was inconsistent with government research into potential Central Bank Digital Currency (CBDC).

According to Travers

It would be foolish for the government to adopt an enforcement approach to taxation of crypto assets at its early stages.

The Reserve Bank of Australia (RBA) is interested in developing its own CBDC (called eAUD). It plans to conduct a pilot program in January 2023, during which interested parties from the sector can submit proposals for possible applications of the eAUD.

The Labor Government has delayed its budget from May. Earlier, it committed to a “token mapping” strategy to learn about the digital asset sector and tokens before regulating the industry.

Coin Edition’s first article, Australian Federal Budget Lists Cryptocurrencies As Asset Class, appeared first on Coin Edition.

See original on CoinEdition

News Source and Credit

Stocksak Editorial

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