Crypto Regulations in Australia
In regards to blockchain or other Distributed Ledger Technology (DLT) there are no specific regulations that deal with them as of right now. However, ASIC released an information sheet (INFO 219 Evaluating distributing ledger technology).
Source: Open Legal
In 2018 new laws for digital currency exchange providers were implemented by the Australian Transaction Reports and Analysis Centre (AUSTRAC)87, the financial intelligence agency and AML/CTF regulator. Firms are required to register and implement KYC policies, report suspicious transactions and comply with AML legislation. In December 2021, Australia said it will create a licensing framework for cryptocurrency exchanges and consider launching a retail CBDC as part of an overhaul of its payment industry. Josh Frydenberg, the Treasurer, said the government would begin consultation in early 2022 on establishing a licensing framework for digital exchanges, allowing the purchase and sale of crypto-assets by consumers in a regulated environment. The government would also consult on regulating businesses that hold crypto-assets on behalf of consumers, and on the feasibility of a central bank digital currency, Frydenberg said. Taxes on cryptos in Australia88, generally are subject to capital gains taxes which range from 19 to 45%.
Source: Thomson Reuters
In Australia, cryptocurrency, digital currencies, and cryptocurrency exchanges are legal. In addition to this, Australia’s cryptocurrency regulations and laws are also progressive. The legal status of cryptocurrencies in Australia means that they are subject to the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF 2006), section 5 and associated rules. Accordingly, Bitcoin, and cryptocurrencies that share its characteristics, are treated as property and subject to Capital Gains Tax (CGT).
Source: Comply Advantage
Cryptocurrency and cryptocurrency exchanges became legal in Australia in 2017. Australian laws have been very progressive to accommodate cryptocurrency and its advancements. Cryptocurrencies are legal and are treated as property. The Government has not intervened with cryptocurrency too significantly as there has just been general clarifications.
Source: Open Legal
Senator Bragg spoke at the Australian Crypto Convention on the weekend, highlighting the importance of digital asset regulation and announcing his intention to introduce the Bill into Parliament.
The Bill introduces licenses for digital asset exchanges, digital asset custody services and stablecoin issuers. The rationale for the licenses is to provide consumers with confidence that risk is managed similarly to other financial services, as well as providing regulatory certainty to promote investment and growth in Australia’s digital asset ecosystem.
The Bill also establishes disclosure requirements for facilitators of the e-Yuan in Australia. While cross-border payments using e-Yuan are not currently available in Australia, Senator Bragg considers it important to analyze the development of e-Yuan to pre-empt the risks of currency substitution and privacy breaches.
Source: Hall & Willcox
Cryptocurrency is viewed as an asset by the ATO and is treated as property for tax purposes. Cryptocurrency has been subject to the Capital Gains Tax (CGT) just like any other property. Before this they had been double taxed under the Goods and Services Tax (GST).
Source: Open Legal
In 2021, the Australian Taxation Office (ATO) stepped up its enforcement of CGT reporting violations. Under the rules, where the ATO detects a reporting violation regarding a profit derived from a cryptocurrency transaction, it may collect a penalty of 75% of the outstanding tax liability – on top of the original tax (and interest).
Source: Comply Advantage
Australia’s cryptocurrency regulations require exchanges to register with the Australian Transaction Reports and Analysis Centre (AUSTRAC) in compliance with the AML/CTF 2006 Part 6A – Digital Currency Exchange Register. The regulations require entities acting as exchanges, or providing registrable exchange type services, to identify and verify their users, maintain records, and comply with government AML/CTF reporting obligations. The CEO of AUSTRAC maintains the Digital Currency Exchange Register and unregistered exchanges are subject to criminal charges and financial penalties.
Source: Comply Advantage
Australia is set to be the first country to do a virtual stocktake of the cryptocurrency sector, in a move that has global commentators buzzing.
The initial focus for the government will be ‘token mapping’, which refers to grouping types of crypto assets based on their technological features and underlying code. Announcing the move on Monday, Australian Treasurer Jim Chalmers called it a “first step in a reform agenda”.
“Australians are experiencing a digital revolution across all sectors of the economy, but regulation is struggling to keep pace and adapt with the crypto asset sector,” he said, in a statement released by the Treasury.
Source: News Room
Australians have continued getting duped by investment and crypto-related scams, losing 242.5 million Australian dollars to scammers so far in 2022, according to Scamwatch’s latest data.
From January to July of this year, the majority of all funds lost to scams of all types were investment scams, which range from romance baiting scams to classic Ponzi schemes and cryptocurrency scams.
The figure is already 36% higher than the figures across all of 2021, which revealed that Australians lost 178.2 million Australian dollars to investment scams in the year.
Source: Coin Telegraph
The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) applies and imposes obligations on any entity that engages in financial services or credit activities in Australia, including the provision of digital currency exchange services.
Source: Scorechain
In 2018 digital currencies were caught by the Australian anti-money laundering and counter terrorism financing regime AML/CTF. This has lead to the legal status of cryptocurrencies being subject to the Australian Anti-Money Laundering and Counter Terrorism Financing Act 2006.
Source: Open Legal
Australian authorities appeared to have stepped up scrutiny over the crypto space amid a rise in crypto scams, hacks and the general market downturn.
Source: Coin Telegraph
In August, the Australian Federal Police set up a dedicated team to monitor crypto-related transactions after previously calling cryptocurrency an “emerging threat” amid a rise in criminal activity surrounding the technology.
Source: Coin Telegraph
In a statement Monday, the Australian treasury announced a multi-step plan to establish a crypto regulatory framework that it claims will be more thorough and better-informed than those previously established “anywhere else in the world.”
Key to the government’s approach will be a form of market research it’s calling “token mapping.” Token mapping will allow officials to view and evaluate nuanced trends in Australian crypto markets, to best “identify how crypto assets and related services should be regulated.”A representative from the Treasury’s office told Decrypt that “the token mapping exercise will be conducted this year. The timeline for changes to legislation and regulations will depend on the outcome of this consultation.”
Source: Decrypt
