Australian Tax Authorities Issue Warning to Crypto Investors To Disclose Profits or Face Legal Action

By Bhushan Akolkar
Published May 28, 2021 Updated May 28, 2021
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Australian Tax Authorities Issue Warning to Crypto Investors To Disclose Profits or Face Legal Action

By Bhushan Akolkar
Published May 28, 2021 Updated May 28, 2021

Tax authorities in Australia are now after crypto investors following a major crypto rally ahead this year. In the latest development, the Australian Tax Office has urged investors to report their crypto profits or else face legal action on charges of tax evasion.

Tim Loh, the assistant commissioner at the Australian Tax Office spoke to the local news publication news.com.au. He said that the ATO regards crypto as an asset and not currency. Hence it becomes taxable under this category. The Tax Office is likely to get in touch with 400,000 people this year asking them to review their previous statements on crypto investments and to further divulge the profits and losses they incurred.

Loh added that crypto investments and their related taxes shall be treated in the same way as shares under the capital gains tax framework. Any time when crypto is traded against fiat or other digital assets, it becomes taxable, said Loh. The same is the case for other forms of cryptocurrencies like NFTs.

The major concern of crypto tax authorities has been the anonymous ownership of digital assets. Regulators have been going after several unhosted wallets used in the crypto market. The Australian authorities track crypto investments by comparing the data from exchanges and the tax return details of individuals.

“There isn’t a game of hide and seek. We have got that information and all we are asking people to do is follow the rules,” said Loh.

UK Treasury Secretary: Crypto Firms Fail to Meet AML Standards

John Glen, economic secretary to the U.K. Treasury, has recently issued a statement warning that a large number of crypto firms and startups fail to meet the anti-money laundering (AML) laws. “A significant number of firms have failed to implement appropriately robust AML control frameworks, and to employ fit and proper personnel,” noted Glen.

It is clear that regulators worldwide have been working to get more control over companies operating in the crypto space. This comes as the total number of crypto scams skyrocketed earlier this year following a major rally in the crypto market.

Recently, British bank NatWest also launched new crypto scam alerts for all its account holders to prevent them from falling victim to crypto scams.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Bhushan Akolkar
826 Articles
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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