Australian Tax Office Declared Rules About Cryptocurrency Profits

The Australian Taxation Office (ATO) has reissued a warning to traders to confirm they declare their cryptocurrency profits when coverage their annual revenues. The ATO has warned aussie crypto traders various times in the past but the problem is currently reaching fever pitch.

Cryptocurrency regulatory necessities across Western nations tend to be quite lax in comparison to their Asian counterparts, however times are changing, particularly in Australia.

Aussie Tax office desires their Cut of Cryptocurrency Profits

The ATO have warned aussie crypto traders and exchanges that they need to declare their cryptocurrency profits because the tax regulators are trying to enforce bigger transparency. Reading between the lines, it means that they require their cut and are hell-bent on getting it.

Digital asset exchanges across Australia should currently verify the identity of their users and can must report any transactions over $10,000 that are deemed ‘suspicious’. though the ATO have cited this is connected to aussie anti-money laundering and anti-terrorism finance laws, several crypto users will see this otherwise.

A spokesperson for the ATO recently created an announcement reported in the Australian financial Review that said:

While there is no specific label on the capital gains schedule or income tax return to identify how many people have invested in cryptocurrency we are still looking at lodgment activity this year to determine any significant impact of cryptocurrencies.

Are the ATO Reacting to increased Tax Questions?

Although to the laymen it'd seem that the ATO is solely trying to enforce bigger transparency so they will get their taste of the action, they're apparently simply reacting to a rise of queries in regards to the tax obligations on those creating cryptocurrency profits by saying:

We have determined through our ATO community channel and advice areas a rise in queries regarding tax obligations of cryptocurrency activity, that we see as a positive in individuals wanting to do the right thing in meeting their obligations.

It's all about individuals doing the proper factor. Of course!

If you're an aussie crypto trader and you would like to confirm you meet the ATO’s taxation laws on cryptocurrency profits, you'll need to keep records and dates of your crypto transactions. You will need to show the quantity in aussie dollars and name the purpose of your transactions and other parties involved in the trade.

Although many will cite that such transparency is crucial if crypto is to evolve, most crypto supports will believe this goes against the entire ethos of cryptocurrency.