Possibilities Of Crypto Trading And Business In Australia
According to the latest surveys, around 18% of Australians own crypto assets. The most popular cryptocurrency is bitcoin. The overall attitude towards cryptocurrencies in Australia has improved significantly compared to the last few years.
Cryptocurrency transactions are defined as barter relationships. Companies that work with virtual money must keep mandatory records of all transactions by content and date. Tokens received as payment are equated to ordinary income and valued in Australian dollars. Individuals are allowed to purchase tokens and participate in ICOs. The legal rules will be similar to those used for storing assets in a bank account. The holding period of cryptocurrencies is the main indicator on which the recognition of the deposit as an investment, rather than personal savings, depends.
Australia’s Parliament passed a law canceling the controversial double taxation on cryptocurrency transactions. Australians will no longer have to pay Goods and Services Tax on cryptocurrency purchases in the nearest future, but transactions with digital currencies will impose upon the income and capital gains tax.
Australian crypto business
There are some rules to follow dealing with crypto platforms:
- Mandatory registration.
- Transmitting data on all transactions above the $10,000 AUD.
- Verification of clients.
- Reporting of all questionable transactions with cryptocurrencies.
- A limit of 28 days for checking information.
- Storage of information on the activities of the electronic trading floor for a minimum of 7 years.
- Fully compliance with Anti-Money Laundering and Counter-Terrorism Financing Laws.
Businesses with cryptocurrencies online in Australia are subject to the standard verification procedure.
All cryptocurrencies in Australia are recognized as a commodity under current law and are equivalent to foreign currency. All exchanges are required to undergo a licensing process. Failure to comply will result in penalties, up to and including criminal prosecution of the founders. The activity of such trading platforms is illegal.