Australia confirms that crypto is not a forex
Cryptocurrency in Australia
Modified Date:- Published Date:-Categories: Cryptocurrency
Although El Salvador and the Central African Republic have made bitcoin legal tender, newly-elected Australian treasurer Jim Chalmers has stated that crypto will be kept out of the foreign exchange tax regime under the Albanese Labor government.In a prepared statement, Chalmers noted that the decision by the El Salvador government to allow bitcoin as legal tender "has the potential to create uncertainty about the status of crypto assets such as bitcoin for tax purposes in Australia". No further details were given as to what was meant in that regard, although pragmatism would potentially necessitate a rethink of the position should further evidence emerge. As an example of practicality at work, consider the US Lumis Gillibrand crypto bill, currently under consideration, which proposes that crypto transactions less than US$200 do not make a taxable event. Even though Australia's bitcoin industry body campaigns specifically for bitcoin to be treated as a foreign currency, this latest government announcement has put a halt to that, at least for the time being. While cryptocurrencies remain highly volatile with the potential for exponential gains, it is unlikely that the Australian government will give up the opportunity to extract revenue in the form of capital gains.On the bright side, shrewd investors can use this latest downturn as an opportunity to minimize losses to maximize efficiency.
There have been recent reports in Australia that crypto is not legal in the country. These reports can be found on various news websites such as ABC, Channel 10, News.com.au and others. In this article we will examine these reports and try to find out if the conditions under which cryptocurrency is deemed illegal are still present or not.