Many cryptocurrency traders use these online investments to avoid paying taxes and this has made the Australian Taxation Office (ATO) to start taking measures. According to founder of Adelaide based Fab Tax Accountants, Miriam Clappis, all those who invest in cryptocurrencies, including Bitcoin, have to pay taxes. Investors who avoid taxes are in for a shock starting the 30th of June.
No more tax dodging!
Clappis declared that cryptocurrency investors also have to pay taxes depending on their intentions. These taxes are similar to those applied to property shares and many investors have no idea it is a must. Some are under the belief that the cryptocurrency market is similar to that of gambling and no taxes are necessary. Unfortunately for them, ATO will start taking measures soon enough.
Existing regulations in Australia
ATO has already asked external consultation to bring up to date the 2014 cryptocurrency regulations. These measures will be applied to keep track of cryptocurrency transactions and tax evasion.
Clappis gave an example of a stay at home mum who started with $10,000 and has currently made $80,000 all in crypto. She had to cancel the family tax benefit and has not received any penny because all her money is invested in cryptocurrency.
Most popular cryptocurrencies so far
Bitcoin is still number one, followed by Ethereum and Ripple. The number one cryptocurrency platform uses blockchain technology. Similar to Bitcoin (BTC), Ethereum (ETH) also uses a decentralized system to operate. Ripple is owned by a foundation and it does not use a decentralized system.
In 2018 the cryptocurrency market has started out with a big blow due to news that the South Korean and Chinese Governments are getting involved with this already volatile market. It is only a matter of time until more governments get involved.