Bitcoin trading in Australia: risks and benefits

In 2017, the Australian Parliament passed a law according to which cryptocurrencies are equated to “foreign currencies” and, accordingly, receive official status. Any bitcoin trading Australia aimed at purchasing goods or services (up to 10 thousand dollars) is not taxed, however, when it comes to making profits using cryptoactive assets, holders of digital assets are required to pay taxes in accordance with Australian law.

The status of bitcoin trading Australia

On the one hand, bitcoin trading Australia, in fact, received official status and is used on a par with fiat money. However, on the other hand, the principles of decentralization and anonymity that are at the origin of the crypt are being questioned. Cryptocurrency exchanges operating in Australia, are committed to the policy of "Know your customer" and provide data on the customers’ accounts to the state, if necessary.

Awareness of local people about cryptocurrency

Nevertheless, bitcoin trading Australia continues to evolve. Since March 2018, you can even buy cryptocurrency in Australia at newsstands by registering a pre-account wallet. Exchange Bitcoin.com.au maximally simplified the process of buying cryptocurrency. The minimum purchase amount is 50 Australian dollars, or aud (about 40 usd), and the process of receiving digital funds takes only 20 minutes.

Lets see some statistics. On the Green Continent, 7% of residents already own a cryptocurrency, another 15% are ready to invest in it. In addition, more than 70% of the population are aware of the existence of cryptocurrencies (this is the 5th indicator in the world). For comparison: in Russia, almost 70% of the population have not even heard of crypto, its selling and buying.

A special city for bitcoin trading Australia

In June 2018, the world's first “cryptocurrency city” appeared in Australia. This is Agnes Waters, located near Brisbane. There are only 2,000 residents, however, in most hotels, restaurants and cafes you can pay with Bitcoin, Ether, and a number of other popular cryptocurrencies. This innovation appealed to tourists, since the town is located near the Great Barrier Reef, one of the main attractions of the world.

A new stage in the development of bitcoin trading Australia is scheduled for November 2018, when Novatti AUD Utility plans to release a stable coin secured by the Australian dollar. The project is planned to be implemented on the Stellar blockchain.

Weakened principles of unanimity and decentralization

The BlackBall expert team notes that Australia is preparing to become the first country where the crypt will be a real competitor to fiat money, and other countries may well adopt the legislative framework for regulating the industry. At the same time, stable coin may well be considered an electronic version of the fiat Australian dollar, since bitcoin trading Australia will be implemented in domestic trade.

It is Australia that is able to launch a wave of adopting the official status of cryptocurrencies around the world. It will ease the process of trading. However, the principles of decentralization, privacy policy and anonymity will no longer be fully implemented, as it was originally intended, since cryptocurrency exchanges, in fact, will be able to equate to banks, requiring the provision of information about the trade and account of a particular client.

New set of rules for crypto exchanges

Recently, Australia adopted a law that introduces a new set of industry recommendations for the exchange of cryptocurrencies in the country. To remain in working condition, exchanges and platforms of bitcoin trading Australia must now register and comply with laws to combat money laundering and the financing of terrorism. Regulation is part of a wider effort to combat the illicit use of cryptocurrency.

An article published by the Australian Transaction Agency and Analytical Center (AUSTRAC), the government's financial intelligence agency, summarizes the major commitments that are necessary for exchange of bitcoin and altcoin exchanges. In addition to registering with the agency, exchanges must:

  • adopt and support an anti-money laundering and anti-terrorism program (AML / CTF);
  • identify and verify users (the policy “know your customer”);
  • read and report about suspicious activities, suspicious contacts and transactions of $ 10,000 or more;
  • maintain certain records for seven years.

These commitments are going to reform existing system of crypto trading.

The info from AUSTRAC

According to AUSTRAC, exchanges offering services without adopting “reasonable measures” to comply with the new legislation may face criminal charges and sanctions. The government provides a six-month grace period that will allow exchanges of bitcoin trading Australia to continue to provide services, while their application for registration is undergoing the relevant review process. The exchanges also must submit registration applications.

AUSTRAC worked hard in order to gain control over the exchange of cryptocurrencies, the Australian Senate approved a bill to amend the fight against money laundering and the financing of terrorism in December of 2018.

The government’s attitude to bitcoin trading Australia

The influence of cryptocurrency on the global world economy today is very significant. So, if we analyze the demand for securities of many large corporations, it has dropped significantly. Investors have shifted their course sharply to the distribution of investment portfolios, in which one of the assets is a “cryptocurrency”. It is no wonder: over the past year, all those who invested their money in digital coins, received just a huge profit, practically without any limits (hundreds of percent).

The same situation occurred in bitcoin trading Australia, where digital coins were treated with great interest. Today, once again, the government has made it clear that no one is going to oust the cryptocurrency out of the economy, and to hinder the work of investors with that too. But in turn, the region started taking control of bitcoin exchange in its own hands in order to ensure the maintenance of the “transparent” activity of investors, companies and all financial entities.

The function of Austrac

AUSTRAC (Australian Transaction Reporting and Analysis Center) seriously takes control of market investors dealing with bitcoin trading Australia. Now each mobile platform for cryptocurrency trading is required to register (obtain a license from the national financial regulator), and each client must learn and provide all of their data (pass verification).

Recently, Australia announced that it is avoiding double taxation on cryptocurrency (banks have come up with their own option of money laundering), so for investors and traders these news are really great.

New technologies of bitcoin trading Australia

Not long ago, only a few countries agreed to adopt a cryptoindustry at the high legislative level and create favorable conditions for its development, and very soon Australia will have regular news stands in which mainland residents can exchange virtual currency for real. It means rapid development of bitcoin trading Australia.

The main crypto website

Bitcoin.com.au is one of the largest Australian cryptocurrency exchanges online, which relatively recently launched a service that allows you to exchange Bitcoin and Ether for fiat money at 1,200 newsstands.

Rupert Hackett, executive director of Australian crypto exchange and a very famous person in bitcoin trading Australia, said that if before people did not buy and sell crypto currency due to the complexity of the process, now it has become much easier. So, people don’t refuse from buying bitcoins.

Going to the kiosk where you usually take drinks, food or newspapers, you can also exchange cryptocurrency for real money, Hackett explains. According to him, it is the offer that shows how common and legitimate the cryptoindustry can be today.

Also, along with the launch of this cryptographic project in Australia, Bitcoin.com.au has included Ethereum in its list of crypto currency.

In order to use the important innovative site of exchanging crypto savings into real funds, to buy and to sell bitcoin, the user only needs:

  • to register;
  • to start an e-wallet, using online guide;
  • to get a QR code for easy withdrawal of funds;
  • to scan it.

Then, within 20 minutes the funds will go to the client’s account in ripples, btc or litecoins. You shouldn’t pay any fees.

The use of Maxitrade in Australia. Interesting facts and useful hints

Every time a currency pair is associated with the United States, traders should remember that the United States has the largest economy in the world, and therefore almost all economic news releases coming out of the United States are of great importance.

Having studied the economic releases from Australia and the United States that may affect AUD / USD, now let's see what traders on the Maxitrade should expect from these issues.

Traders should prepare for a fast-moving market, especially when the Consumer Price Index (CPI), inflation, is published. This is because this economic release forces the Central Bank to act quickly on interest rates.

In addition, traders should expect a very volatile market when the Reserve Bank of Australia (RBA) makes a decision on the interest rate, as well as during its meetings, which it holds monthly, to assess the situation in the Australian economy.

The state project on bitcoin trading Australia

Australia has officially confirmed that it will consider Bitcoins “just like money”, and btc will no longer fall under double taxation.

In its budget summary for 2018–19, the government refers to this as “part of climate improvement plan for bitcoin trading Australia firms”. This ensures that no general sales tax (GST) will be charged more than once anywhere in supply chains. So, it will be easier to buy bitcoin.

"The government will simplify the work and security of new innovative digital currency companies in Australia," the government’s summary said.

“From July 1, 2017, purchases of digital currency will no longer be subject to the dual effect of the total sales tax (GST). From the point of view of GST, cryptocurrencies (bitcoins and ethereum ripple) will be treated in the same way as ordinary money. Currently, consumers using digital currencies bear the price of GST twice: when they are purchased and when they are exchanged for goods. ”

Control of traders’ income

The Australian Tax Administration intends to pursue citizens who hide their income from trading in cryptocurrencies abroad.

The tax authority plans to find and use advanced data analysis tools within the framework of existing data dissemination agreements with other countries in order to identify investors who sell cryptocurrencies on foreign sites and do not notify the authorities about this. According to the CPA Australia's accounting department, “hundreds of thousands” of Australian taxpayers will have to report for the first time on the revenues generated bitcoin trading Australia.

In a conversation with the Australian Financial Review, Australian Tax Administration Deputy Commissioner Martin Jacobs said that the authorities are “not too concerned” about the risks that cryptocurrencies bear in the context of tax payments.

“If people try to deliberately move away from their responsibilities, we will try to take action. We have united various tools designed to solve the problem of capitals of unknown origin and excessive expenses that can be provided by funds derived from trading in cryptocurrencies, ” said Jacobs.

Earlier it became known that the Australian Tax Administration classified Bitcoin and other cryptocurrencies as taxable assets. In addition, the authorities tightened control over traders by amending laws that allow them to receive information about each transaction passing through local cryptocurrency exchanges.

“This will allow us to instantly collect data on cryptocurrency trading, to which we will be able to access and use in carrying out and offering relevant activities,” added Jacobs.

The influence of crypto trading on financial environment

Until recently, Australia had a problematic attitude to legislative regulation of cryptocurrency. Decision in favor of the existing double taxation forced the main cryptocurrency operators to leave Australia back in 2014, due to which innovations in bitcoin trading Australia were forced to be dragged along.

However, this year, FINTECH of the blockchain-based transactions again reminded themselves, and the general tone of the budget summary of the governments indicates a desire to change the financial environment of Australia.

“Innovation will drive productivity growth in Australia,” the document says.

"The government is committed to ensuring that Australia has become a leading center for global financial technology, and is announcing a new package of proposals designed to bring our Fintech to global leadership."

Brief history of crypto trading regulation in the country

The history of crypto trading regulation in the country can be divided into several steps:

  • May 2013. The Reserve Bank of Australia identified Bitcoin as an alternative to currencies in different countries and a payment system;
  • December 2013. The President of the Reserve Bank stated that it is not prohibited for Australians to pay in stores with any currency they want;
  • February 2014. A representative from the Australian Revenue Service noted that the regulator is considering the options of taxing cryptocurrency transactions. The Australian Securities and Investment Commission has announced the possibility of settling cryptocurrency activities;
  • December 2014. The Securities Commission believes that bitcoin cash is not a financial product;
  • April 2015. "Any potential benefit from the regulation of cryptocurrency activities will not exceed the costs", - Reserve Bank stated;
  • August 2015. The Australian Senate Economic Affairs Committee stressed that, in order to tax the goods and services, bitcoin trading Australia should not be treated as the trade with fiat money;
  • November 2016. According to the Government Institution for the Organization of Accounting Standards, it is necessary to standardize the accounting of digital currencies.

In the summer of 2017, the Australian government proposed a number of reforms to remove cryptocurrency exchange points from the shadows. In particular, such exchangers will be placed under the control of the Australian Transaction Analysis and Reporting Center. Under the new rules fall all companies that allow to sell and buy cryptocurrency. The bill is designed to combat money laundering and terrorist financing.

Conclusion

The Australian government has proven its commitment to protecting the interests of its citizens when it comes to bitcoin trading Australia. Last year, the government put an end to the country's double taxation of crypto terms, which required the payment of taxes when buying cryptocurrencies and again when spending them. In March, the Australian Tax Administration asked taxpayers to contribute to cryptography taxation. When the number of crypto fraudsters increased this year, the government warned the public and called for caution.

Australia has been praised for its open dialogue and forward-looking thinking on cryptocurrency exchanges. Many are considering this new anti-money laundering legislation, which will help to dispel the negative perception of Bitcoin and ultimately contribute to implementation of a cryptographic approach.

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