Australia’s government has officially confirmed that virtual currencies like Bitcoin and others are exempt from the tax regulations that apply to transactions involving foreign currencies.
The status of Bitcoin and other crypto-assets for Australian taxation purposes may come into question as a result of the judgment, according to Treasurer Jim Chalmers and Assistant Treasurer Stephen Jones. Both made this assertion of them.
The government will work to make the current tax structures legal, eliminating cryptocurrency assets’ classification as foreign currency for Australian taxation purposes.
Cryptocurrency assets in investment portfolios will continue to be subject to the long-term capital gains tax. The recently passed regulations will go into effect on July 1st of the preceding year.
This offers certainty and clarity at a time when cryptocurrencies are volatile, according to what Mr Chalmers and Mr Jones indicated. As it has done thus far, the government will continue to play a practical and timely role in the rapidly evolving world of digital currencies.
This choice was made after BTC Markets; an Australian cryptocurrency exchange became the first company in the country to receive a license to offer financial services.
The International Organization for Standardization (ISO) and Blockchain Australia, Australia’s national cryptocurrency industry association, have certified BTC Markets in information security management.
Intense Bear Market Run in 2022
This year, there has been a downward trend in the price of bitcoin. However, the situation deteriorated over the weekend due to investors’ panicking in response to the US Central Bank raising interest rates by 75 basis points.
As a result, cryptocurrency investors quickly withdrew their money from the market due to fears of a global economic downturn. As a result, many of the best blockchains in the world experienced a significant price decline due to the widespread selling frenzy that followed.