A recent decision by a Victorian court may lead to hundreds of millions of dollars in cryptocurrency tax refunds for Australians as the country considers tightening regulation of digital assets.
Court Ruling and Its Impact on Tax Policy
The court ruling classified Bitcoin as currency rather than property, which could force the Australian Taxation Office (ATO) to reconsider its approach to taxing cryptocurrency transactions. It is estimated that this change could allow for the refund of up to $640 million in capital gains tax already collected.
Cryptocurrency in Australians' Lives
Australian interest in cryptocurrency has grown significantly in recent years; a 2025 survey indicated that over 32% of Australians either own or have owned cryptocurrency. Bitcoin remains the dominant cryptocurrency, held by about 70% of local crypto investors. Cryptocurrencies are also increasingly used across various sectors, including online gambling and real estate. For example, earlier this year, an Australian couple made headlines by selling their land in a Bitcoin-only transaction.
Future Regulation of Cryptocurrency in Australia
The federal government is moving ahead with plans to strengthen oversight of the cryptocurrency sector. New measures are being considered to bring exchanges and brokers under the same regulatory framework that governs traditional financial services. Additionally, regulations for stablecoins are being developed, treating them similarly to electronic funds, with requirements regarding capital backing and consumer protection.
The Victorian court ruling and new regulatory initiatives highlight Australia's efforts to balance innovation with consumer protection in the rapidly evolving cryptocurrency market.
