The Australian Tax Office (ATO) is gearing up to make a significant move in the cryptocurrency market by cracking down on tax evasion. In order to achieve this, the ATO plans to request personal data and transaction details from 1.2 million accounts on crypto exchanges.
The primary objective of this move is to ensure accurate and transparent tax payments, as well as to prevent tax evasion. As part of an audit effort announced in April, the ATO will ask crypto exchanges to provide names, addresses, birth dates, and transaction details of investors.
By obtaining this data, the ATO will be able to identify investors who have failed to report their cryptocurrency activities, such as selling crypto assets for currency or using them for payments. This step is a significant milestone in promoting tax compliance in the crypto world and aims to bring more transparency and regulation to the sector.
The increased pressure on the crypto industry in Australia can be seen as a consequence of the collapse of FTX. Lawsuits have been filed against companies for attempting to sell tokens without proper licenses, and banking partners have blocked payments to crypto exchanges. In addition, a new licensing regime has been proposed to regulate and control the cryptocurrency market in the country.
Last year, the ATO announced that the capital gains tax on crypto products also applies to tokens used in decentralized lending protocols or token interactions. This demonstrates that tax rules are continuously being updated to keep up with the evolving technology surrounding cryptocurrency.
As the cryptocurrency sector continues to grow, it will be necessary for countries to take similar measures to prevent tax losses. However, this should not be viewed as an obstacle for the sector.
Please note that the information provided in this article does not constitute investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and conduct their own research.
