A recent court ruling in Australia changed the approach to cryptocurrency taxation by recognizing them as money rather than taxable assets.
Court Ruling and Its Consequences
A court case involving a federal police officer who allegedly stole 81.6 BTC in 2019 has drawn attention to the issue of cryptocurrency taxation in Australia. On May 19, Judge Michael O'Connell ruled that Bitcoin should be treated as money, not as a taxable asset, which could change existing practices.
Current Tax Policy on Cryptocurrency
Currently, the Australian Taxation Office classifies cryptocurrency as property and taxes it under capital gains tax. This means that transactions involving cryptocurrency, such as selling and swapping, are considered capital gains tax events. At the same time, income from mining and staking cryptocurrency is treated as ordinary income.
Recent Changes in Cryptocurrency Exchange Regulations
In June, Australian authorities introduced cash transaction limits for crypto ATMs. Operators will have to implement caps on deposits and withdrawals, as well as inform users about potential fraud risks.
The court ruling could significantly impact cryptocurrency tax policy in Australia, potentially exempting Bitcoin from the current capital gains taxes.
