Australian Tax Authority Seeks Personal Data of 1.2 Million Cryptocurrency Exchange Users
The Taxation Authority of Australia has directed cryptocurrency investors in the region to submit transaction data. The article noted that the tax office of Australia will identify cryptocurrency investors who have failed to report tax obligations.
On this account, the regulators have called for personal and crypto transaction details from cryptocurrency trading platforms.
The personalized transaction details will be shared with the taxation authority which would allow the taxation officers to identify investors, who are yet to share their transaction history with the regulators.
As per estimation, the tax office will receive details regarding 1.2 million exchange platforms with the intent to bring the defaulters to ensure taxation compliance.
Australian Taxation Office (ATO) has remarked that this data will assist in identifying investors who have failed to pay taxes. The article quoted from a report published in Reuters on the matter noting that the ATO issued the directive last month.
The ATO is seeking personal data details such as DOB, social media handles, phone numbers, and transaction details such as wallet addresses.
Australian Government to Bring Crypto Investors Under Tax Bracket
The ATO has directed the local cryptocurrency trading platform to share the details of their account holders including the type of coins traded and bank account information. Australian regulators have classified cryptocurrencies as taxable assets, unlike forex within the region.
It means that investors have to pay capital gain taxes on the profit that they have generated from trading cryptocurrencies on the spot market.
The news of the tax collection has arrived at a time when crypto markets continue to rise. Since the beginning of 2024, Bitcoin has gained 44%. The market cap of all the top altcoins has reached as high as 27% on YTD as per data projections from TradingView.
The volatility of cryptocurrencies has led to a lack of awareness among investors regarding tax obligations. On this account, ATO notification informed the public.
The notification from the regulator informed investors that the ability to purchase cryptocurrencies under false pretenses is illegal. Australia is not the only country that is making strides in terms of adding cryptocurrencies to the taxation bracket.
The Canadian Revenue Agency (CRA) is also working to achieve the same goals. CRA director Sahil Behal told the media that the regulator is conducting 400 crypto audits and carrying out an investigation on hundreds of crypto investors as a way to retract outstanding crypto taxes.
Various Nations Working on Introducing Crypto Tax Laws
The remarks were published in the local media outlet called National Post on 6th May 2024. These audits started after the authorities projected a possible $39.5 million in terms of unpaid taxes that the CRA officials believe is due from fiscal year 2023-2024. The Turkish government has proceeded to introduce crypto-related legislation by the end of the ongoing year.
The bill in question is expected to offer a legal foundation for cryptocurrency taxation for local investors. It is important to note that Turkiye is one of the leading crypto economies.
Meanwhile, in the USA, regulators are working on raising a long-term capital gain tax rate to 44.6 percent. However, this raise is only applicable to investors who have earnings from crypto investments above $1 million per year.
Biden Administration to Introduce 25% Tax on Unrealized Gains
The Federal Budget proposal introduced by the Biden administration has also made a suggestion to add a 25% tax in terms of unrealized gains for ultra-high-net-worth investors. However, these taxation amendments mean nothing for 99 percent of the investors according to Crypto Tax Made Easy founder Matthew Walrath.
Another Cointelegraph article published on 29th April projected the possibility of a Bitcoin spot ETF approval. The publication quoted remarks from Monochrome CEO Jeff Yew who projected the investment vehicle to generate as much as $4 billion in inflows on the upside.
The report suggested that the Australian Securities Exchange (ASX) may approve a number of spot Bitcoin ETF applications during 2024.
