Australians trading cryptocurrencies are set to make more money, thanks to a senior politician announcing that, under a new licensing system, they would get tax relief on spectacular gains. When investors acquire Bitcoin, ETH, Dogecoin, and Binance Coin, they pay capital gains tax while selling the asset. They are also occasionally stung.
Bitcoin rose from $13,000 to cross $81,000 in less than 18 months, with some significant losses on the way. Cryptocurrency trading is volatile. Therefore, those who are unable to ascertain the value of their digital asset when they purchased it will be taxed on the market value in Australian dollars at the time of sale.
This implies that investors may face a significant capital gains tax if they fail to correctly assess their Bitcoin gain.
To address this issue, a Senate group on financial technology has proposed that investors of cryptocurrency pay capital gains tax only if the transaction resulted in a measurable monetary gain or loss. While Australians have the right to acquire cryptocurrencies on exchanges or directly from other cryptocurrency owners, a Senate committee has proposed new legislation requiring cryptocurrency exchanges to be regulated by the federal Treasury so that an Australian firm is liable.
Senator Andrew Bragg, a Liberal heading the committee, stated that Bitcoin investors generally pay higher taxes. They have proposed a market licensing framework allowing Australians to trade on markets that are based in Australia.
Senator Bragg blasted the large banks for de-banking, which involves closing bank accounts to prevent digital currency transfers during his appearance at a Finder breakfast in Sydney. Senator Bragg questioned large banks for attempting to destabilize buy-now, pay later apps like Afterpay by launching their own buy-now, pay-later app.
The Senate committee proposed that the Australian Financial Complaints Authority be given the authority to examine ‘de-banking’ incidents., According to Australian Banking Association chief executive Anna Bligh, a former Queensland Labor premier, anti-money laundering regulations must be followed.